Reports pulled without permission?

Discussion in 'Credit Talk' started by nosnip, Sep 19, 2003.

  1. nosnip

    nosnip New Member

    Quick question.

    While looking over my credit reports (and my spouses) we noticed that the bank we currently have a loan through is pulling our credit report every month of month and a half for the past little bit.

    We haven't been late.

    We haven't reapplied for anything with them.

    Can they do this since we have an exisiting loan with them?
     
  2. Platinum

    Platinum New Member


    Yes, than can...and that's the main reason why they do that...
     
  3. Butch

    Butch New Member

    Good question Nosnip,

    What kind of a loan is it? Is it an installment loan, like where you have a specific amount due on the same date, each month, for a fixed number of months? (like a car note)

    Or, a flexible credit line, where the amount due can change, and you can again borrow against it, from time to time?


    And I assume these inqs. are "soft", meaning they can be seen ONLY by you?

    Welcome to the board.

    :)

    .
     
  4. DanS

    DanS New Member

    Re: Reports pulled without permissi

    Does your loan have a fixed interest rate and finite number of payments? If so, sounds like it's NOT alright to pull - there's an opinion letter about this on the FTC site. It's quoted often in threads.

    If it's a line of credit, variable rate, etc. then it is permissable. Hopefully these are soft (AR, account review) and not hard inquiries.
     
  5. Butch

    Butch New Member

    Re: Re: Reports pulled without permissi

     
  6. nosnip

    nosnip New Member

    Re: Re: Reports pulled without permissi

    The loan at this point is an installment loan.

    We borrowed a semi large sum of money. The way it works is for the the first 3 years, we pay a set amount each month. We have a payment book, etc.

    After three years, the balance is refinanced into a payment plan.

    We are 19 months into this loan and have never been late.


    I am unsure if the inquires are hard or soft. (how do I tell?) I am assuming they are hard since they are in the section of my credit report that states "This section contains the names of those who obtain a copy of your credit report. Inquires remain on your report up to two years."


    Also, while we are on the subject, the names of most of the inquires on there are abbrevated. How do I find out who they are? There have been 10 inquires this year alone from various companies and I don't recognize most all of them.
     
  7. SoParkDiva

    SoParkDiva New Member

    Re: Re: Reports pulled without permissi

    There's a legend on the bottom of your report that tells u what the abbreviations mean. Hard inquiries just have the name of the creditor. Soft inquiries have abbreviations in front of them.
     
  8. jrjr37

    jrjr37 New Member

    Re: Re: Reports pulled without permissi

    It's probably something like an Account Review for credit cards. Since you have a credit relationship with them, it's probably permissable. Although I'm not sure why they'd have to do it for an installment loan?
     
  9. jlynn

    jlynn New Member

    Re: Re: Re: Reports pulled without permissi

    They can't do it for an installment loan - ie closed end transaction! They *might* have a pp at the end of 3 yrs when you refinance, but they can't go strolling thru your credit report now, if there is nothing they can modify currently (interest, payments, term, etc.) with your account based on the contract you signed 19 months ago.

    http://www.ftc.gov/os/statutes/fcra/gowen.htm


    I just sent out an ITS to Household Finance for pulling 5 times over the past year.
     
  10. Butch

    Butch New Member

    Re: Re: Re: Reports pulled without permissi

    Here's what I was talking about JL.

    The Gowen Footnote:

    • S. Rep. No. 104-185 at 33 (1995). Hence, a creditor may obtain consumer reports for the purpose of reviewing its current closed end (or other) credit accounts without having to comply with the FCRA requirements applicable to prescreened transactions.



    I was thinking that it would be permissable for the creditor, EVEN ON A CLOSED END ACCOUNT, to "assess" the worth of his receivables portfolio.

    They would do that by trying to determine how much of their portfolio is "stable", as far as future payments are concerned.

    The only way to do that is to pull CR's.


    I know you've been looking at this issue. Tell me what you think.

    :)
     
  11. jlynn

    jlynn New Member

    Reports pulled without permissi

    I *might* buy into the S & S argument, if this was happening once a year, or twice a year. But monthly? Don't think so, and if they want to raise that as a defense, then they are going to have to prove their defense, if that means dragging to court the Risk Mgmt groups and crates of Discovery proving thats exactly what they are doing then so be it.

    http://www.frbsf.org/publications/economics/letter/2001/el2001-12.html


    "Many options are available to the user, but common practice has settled on a one-year horizon, which is shorter than the maturity of many commercial loans. This relatively short horizon is due partly to modeling convenience and partly to the increasing liquidity of the secondary loan market and the credit derivatives market. Both of these markets permit banks to hedge (i.e., decrease) their credit exposure to a particular borrower or class of borrowers."

    From the FDIC http://www.fdic.gov/regulations/safety/

    FWIW - That is the very reason I do not send full FTC Opinion letters out. Why give your adversary information? Make them dig for it.


    There are many models out there to determine S & S. Furnishers do not need to pull individual reports (especially every 4-6 weeks) to determine this.
     
  12. Butch

    Butch New Member

    Reports pulled without permissi

    .
     
  13. Butch

    Butch New Member

    Re: Reports pulled without permissi

    Excellent!

    I'm with ya Kiddo.

    :)
     

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