Hi! Does anyone know it it is legal for a company to keep pulling hards over the course of a loan. Here is my situation I have an MBNA personal loan that I have had for two years, over the course of those 2 years they have inquired 5 times (HARD) on my CR's, and never informed me. Why would they do this? To see if they want to offer me credit line increases? Can I sue?
If you have an ongoing relationship with them, I think they have a PP. You might call them and ask if they must pull your CR, to use an A/R (soft) instead of a hard. NV Bone Doc Member of the 650 Club True health comes from within
Well Doc, maybe not.... You mentioned this is a personal loan. I'm assuming its a closed end loan....read this: http://www.ftc.gov/os/statutes/fcra/gowen.htm Your questions raise the issue of whether a creditor in a closed end credit transaction may exploit consumer reports obtained for "review" purposes in order to market its products or services. In the circumstances you described, we believe the answer is "no.". First, "review" is not a purpose for which a closed-end creditor would ordinarily need to obtain consumer reports on its customers. In commenting on the proposed provision which became Section 604(a)(3)(F)(ii), the Senate Committee on Banking, Housing, and Urban Affairs stated: Like creditors, banks and others may need to consult a consumer's report in order to determine whether the consumer's current account terms should be modified. For example, the institution may provide more favorable pricing terms after consulting the report. The permissible purpose created by this provision, however, is limited to an account review for the purpose of deciding whether to retain or modify current account terms. (emphasis added).(3) The terms of a closed-end credit transaction are predetermined and generally may not be changed unilaterally by the creditor unless the contract expressly provides for such action (e.g., in the event of default). Therefore, the creditor is unlikely to have a reason to consider "whether to retain or modify current account terms" and, thus, would not have any routine need to procure consumer reports to "review" its accounts. Second, the credit bureau must, pursuant to Section 607(a), require the creditor to "certify the purposes for which the information is sought, and certify that the information will be used for no other purpose." (emphasis added). Because Section 604(a) provides no authority for a creditor (or any party) to use a consumer report for marketing purposes,(4) a creditor would violate its certification by using an existing report in such a manner.
A closed end loan is one where there is a fixed beginning balance, and you pay it down to zero in an agreed-upon time frame. All subsequent balances will be lesser than the original balance, not taking into account any fees and penalties. No further credit will be extended to you as you continuously reduce the balance. If you borrowed a set amount of money, say $10,000, and agree to pay it in installments over a period of, say, 4 years ... that's an example of a closed end loan.
Okay, I found the official definition of "closed end credit transaction" from truth-in-lending act (any emphasis is mine):
They have PP on an open account for a "HARD"...BUT THEY CAN DO AN "AR"~~"HARD" ONLY HURTS YOUR SCORE SO THEY CAN "JACK" YOUR RATES!!!
Re: Re: MBNA pulling periodical HARDS! Y??? Interesting question. I would like to know what they are "certifying" as their reason to pull.
