I understand that a soft inquiry may only be done by a party that has a permissible purpose, i.e. promotional inquiry or account review. However, what is the standard for a hard inquiry? Does permissible purpose apply for hard inquiries or must the party pulling the hard have the express authorization of the consumer? My question arises from my opening a new checking account with Bank of America. The day I opened it they pulled a hard inquiry. They never asked and I didn't sign anything that day consenting to the inquiry. Can they argue permissible purpose or does that concept simply not apply? I would like to get the inquiry off my report but I do not want to start off my new relationship with Bank of America on the wrong foot. Ultimately I would like to obtain a credit card from them after I see my scores go up some more.
The FCRA makes no distinction between "hard" and "soft" inquiries (you will not find either of these terms in the FCRA). ALL inquiries are covered under section 604(a), except for employment & promotional inquiries which are covered under sections 604(b) and 604(c), respectively. Unfortunately, 604(a)(3)(F)(i) does provide a PP in connection with a legitimate business need for the information in connection with a business transaction that is initiated by the consumer (such as the opening of a new checking account). This view is also supported by the Greenblatt, Benner and Gowen FTC Opinion Letters.
