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CA allowed to pull credit report?


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Hi,

I am a newbie and having been searching and reading for weeks. I wanted to make sure not to repeat any questions.

Almost all of them have now been answered just by searching (thanks everyone!) but I am still unsure about two things and was hopeing for some help.

Does anyone know if a Collection agency is allowed to make a hard inquiry on a credit report?

a CA who was trying to collect on a credit card account pulled a hard inquiry on my report. doesn't this look like I am asking for credit from them?

Also...I filed bankruptcy and did not reafirm my mortgage but am living in the house and am paying voluntarily. Is my mortage company allowed to report?

any advice would be apreciated! Thanks everyone this board is awsome!!

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Does anyone know if a Collection agency is allowed to make a hard inquiry on a credit report?

a CA who was trying to collect on a credit card account pulled a hard inquiry on my report. doesn't this look like I am asking for credit from them?

If a CA is collecting for an OC, then the answer would be yes, they have permissible purpose to pull your report.

I don't know anything about bankruptcy so someone more knowledgable will have to help you with that question.

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The Fair Credit Reporting Act (FCRA) does not talk about hard vs. soft pulls. They cover permissible purpose (PP). FCRA opinion letters go further to point out what is legal, see:

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

Is the Collection Agency (CA) trying to collect a debt that was discharged in the bankruptcy?

What type of BK did you file?

Basically weather an Original Creditor (OC) or a CA acting for an OC or a CA that has purchased a debt has a right to make a credit inquiry is determined by there reasonable legal right to review an open existing account or a charge off'ed account that they have a reasonable expectation of collecting on. An account that was BK'ed on and was nor reaffirmed is closed.

A BK CH 7 does not extinguish a debt but it estops an owner of the debt from collecting from the party that filed the BK CH7. Therefor there is no Permissible Purpose (PP). Such a credit inquiry would constitute a $1,000 violation under the FCRA. Such a violation would also constitute a violation under federal BK laws but, unfortunately, congress did not give individuals a cause of action to sue for such violations once the automatic stay is over. The only recourse is to go back to the BK court and ask them to take action aghast the offending party. There is a president from a North Carolina case where a BK court leveled a fine for active collection activities involving harassing phone calls and such.

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The inquiry was pulled about 25 days before I filed bankruptcy. I had told the CA that I was going to do this...and then they pulled my credit report (of course I have no way of proving this because I was talking to them over the phone. I didn't know this was bad at the time)

it was not yet a charged off account. It was a scum bag collection agency for Bank of America that was pretending to be a lawyer.

I would like to get it removed. Any ideas?

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Post BK a single inquiry is not worth worrying about. It only impacts your credit report for 12 months. If they pulled before you filed BK then they would have PP if they were acting on behalf of the OC.

What you should be aiming for is removing the negative account.

You say it was not a charge off 21 days before you filed BK. Is it now? When did it become a charged off account if it did become a charged off account?

The account can't be listed as a charge off if the BK was filed before the account was charged off.

Who is reporting the account now to your credit reports? The CA or the OC?

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This account never became a charged off account. However When I filed bankruptcy and checked my reports six months later...suprise suprise it is reporting as a charge off with a balance, not IIB. I have been trying to get this off of my reports I have disputed and they verified...so now I will have to go straight to Bank of America themselves and let them know that they had better change it.

I guess I was a little more interested in pissing off the CA. If it was possible that they were doing something they weren't supposed to I wanted to nail them with something. They really upset me and just felt like giving them some trouble. A little petty I guess. :oops:

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This account never became a charged off account. However When I filed bankruptcy and checked my reports six months later...suprise suprise it is reporting as a charge off with a balance, not IIB.

That happens all the time and you should be grateful for the error. Now you have some leverage because the account is being reported incorrectly. You need to determine who is reporting the account. If it's the OC that's great. They are easier to deal with. If it is the OC send them a letter letting them know that they are reporting the account incorrectly and they are violating the FCRA. You can include a copy of that section of your BK papers that shows the account was included in the BK. Never send BK papers to a CRA but you can to an OC. I did it and it worked for me.

I guess I was a little more interested in pissing off the CA. If it was possible that they were doing something they weren't supposed to I wanted to nail them with something. They really upset me and just felt like giving them some trouble. A little petty I guess. :oops:

It is silly to try to piss off a CA. They are slime. That's a little like a meter maid issuing a parking ticket to a bank robber in the middle of a bank robbery. :lol: If the CA was authorized to act for the OC then they had PP to pull your credit.

You need to concentrate on getting all negative accounts removed.

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Actually, a CA has PP to pull your credit. What they cannot do is to report it as a hard inq. Even though the FCRA is silent on hard vs. soft pulls, the CA is coding this as a hard pull so that other creditors can see that a CA is looking at you. This is a backdoor way to place a collection on your CR without actually doing it.

If the CA is acting as an agent of the OC to pull your credit, the pull MUST be coded as an AR. If not, this is certainly not "complete and accurate" as per the FCRA. I have gotten in this discussion many times with the CRA's and they have always deleted them. CAll them, it has always worked for me.

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