This is not good. I am in the process of a refi and the broker and lender have each pulled inquiries, four in total. They only cra properly coding these inquiries is EQ, coding as soft with an EU. But the Evil Exp and TU, keep coding as hard. TU says "give me a letter" from lender, and EXP says "sorry, we don't investigate." Has anybody else noticed this?
Wouldn't this be a HARD inquiry anyway? My TU report lists one inquiry by the mortgage broker and another inquiry by the lender as "Permissible Purpose = Credit Transaction." And here is a related question: The evil Experian combines both PRM and AR inquiries into one category called "Requests viewed only by you" and does not separately code them as PRM or AR. So how do you know if it's PRM or AR (which makes a big difference because you can sue over ARs without a PP).
Best I can figure, you have to call them and yipee! rely on what they tell you..can't think of much scarier.
There is nothing in FCRA requiring CRA's to code mortgage/auto inquiries as soft. HOWEVER, Fair Issacs, the fico makers, have claimed to have recoded their software programs to count ALL mortgage inquiries in the last 30 days as only ONE HARD inquiry. Something similar for auto inquiries, except it is like 14 days. Apparently, Fair Issacs received so many complaints form consumers that they were being unfairly "penalized" for shopping aroung for mortgages, trying to get the best rate. So in response, Fair Issacs redeveloped their software. Seems like Tu and the Evil Exp could care less what fair issacs says. I think there is some flaw in their systems (TU & EXP) where they are disregarding that the inquiries are being pulled for a mortgage, and fico doesn't pick it up, counting each one as a hard??
I think I understand your question better now. You had 4 mortgage inquiries within the last 30 days. Since Fair Isaacs changed their software to count these as only ONE HARD inquiry for purposes of the FICO score, you feel that the CRAs should also be coding them as only ONE HARD inquiry. I agree that it would make more sense for the CRAs to code it that way. If they did, then the FICO software would only see ONE HARD inquiry for sure, and everyone who pulls your credit report would also see only ONE HARD inquiry for mortgage purposes within that 30-day period. However, are the CRAs legally REQUIRED to code those 4 mortgage inquiries as being only ONE HARD inquiry? The FCRA is silent on the issue, and the CRAs don't necessarily have to do it just because Fair Isaacs said so. To force the issue in court, I think you would need to show that the TU & EXP coding actually fooled the FICO software into counting these as more than ONE HARD inquiry and thereby wrongly lowered your FICO score. Then you would have possible damages from the incorrect coding of the inquiries by TU & EXP. Is there any way to find out if these are counting as more than ONE HARD inquiry as far as your three separate FICO scores are concerned? Another thought is this: Do credit card companies reject applications based on excessive inquiries? If so, then you are being unfairly treated by having 4 hards instead of the ONE HARD that Fair Isaacs has publicly stated it should be. DISCLAIMER: There is nothing in this post of a sexual nature; any similarity is simply in the mind of the reader.
Yeah, I agree you won't be able to force the CRA's to recode the inquiries, claiming Fair Issacs has allowed for this. I think I am just going to send my letter into TU and EXP asking they investigate these inquiries. Doubt they will investigate. Probably just take my chances in small claims, stating under FCRA they were required to investigate my dispute. After all, if EQ coded these as softies, and the inquiries were pulled from the same source, then why didn't TU and EXP code them as soft (other than the obvious, they don't care)? I don't think I would have a problem in small claims getting TU or EXP to admit that if they receive inquiries that are mortgage based, they will only count the first one. Call and ask over the phone, they will tell you same thing. The problem for me has been convincing EVIL EXP and TU the inquiries were mortgage related. Stupid, you would think inquiries by creditors with words like LENDING and HOME MORTGAGE would tell ya' the inquiry is mortgage related, but no, they both insisted as far as they were concerned, they weren't mortgage inquiries, or their system would have "caught it". Honestly, I think EXP and TU just train their reps to a)not know any better or b)just lie out of the sides of their mouths. So, I think I am just going to send CCCR to TU and EXP requesting they investigate these inquiries. Probably won't investigate. In which, I might just take my chances in small claims stating under FCRA they had an obligation to investigate these inquiries, especially since EQ lists these inquiries differently (all inquiries were pulled from the same source at the same time). If I could get them to admit their system codes mortgage inquiries as one within 30 days (like they claim), then the better, because if they did investigate my dispute, it would have "upped" my score, eliminating three hard inquiries. As far as FICO counting them, if you run FICO on TU, it will tell you how many hard inquiries you have and who pulled your report.
I think you have a valid dispute and they would have to investigate and correct the inquiries so that they show up as mortgage inquiries for purposes of the FICO score. Otherwise, they are reporting incorrect information that wrongly lowers your FICO score and their "system" isn't catching it. So these brilliant folks actually insisted that the inquiries were not mortgage related??? It would be good to have that on tape to play for the judge...if you are in a one-party state.
