Tootsie88

Hard inquiry on a 16 year old debt

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Hello everyone:

 

In reviewing my credit report I noticed that Dynamic Recovery Services pulled a hard inquire on my CR on a debit that is nearing 17 years old.  A hard inquiry???

 

Where's the permissible purpose in that? I read what constitutes permissible purposes but can't find anything on debts over 15 years old. 

 

Any insight is greatly appreciated.

 

 

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@Tootsie88

 

Since a 16 year old debt would no longer be reported, there would be no account for the JDB to review.

 


1681b(a)(3)(A)

(3) To a person which it has reason to believe—
(A) intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer;

1681b(a)(3)(F)(ii)

(F) otherwise has a legitimate business need for the information—

(ii) to review an account to determine whether the consumer continues to meet the terms of the account.

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This is a toughy, but I think the words "...or collection of an account..." would give them permissible purpose.

 

And I don't think there's any statue of limitations on PP.  If they have something in their hands that leads them to believe you owe them money, they have reason to check your credit.

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@Tootsie88

 

Since a 16 year old debt would no longer be reported, there would be no account for the JDB to review.

 

1681b(a)(3)(A)

(3) To a person which it has reason to believe—

(A) intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer;

1681b(a)(3)(F)(ii)

(F) otherwise has a legitimate business need for the information—

(ii) to review an account to determine whether the consumer continues to meet the terms of the account.

 

Thank you very much. Just so you know, I've been in contact with them via email and they advised me that they would have it removed with 3 - 7 days. This was 6 weeks ago. How long do I have to wait before I get serious. 

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Thank you very much. Just so you know, I've been in contact with them via email and they advised me that they would have it removed with 3 - 7 days. This was 6 weeks ago. How long do I have to wait before I get serious. 

 

File a complaint with the CFPB and it should be gone immediately.  Another option is to dispute the hard inquiry with the CRAs.  I had one from LVNV on a zombie debt.  I disputed it and stated there was no permissible purpose as the debt could not longer be reported.  It was removed in less than a week.

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This is a toughy, but I think the words "...or collection of an account..." would give them permissible purpose.

 

And I don't think there's any statue of limitations on PP.  If they have something in their hands that leads them to believe you owe them money, they have reason to check your credit.

 

This debt fell off my account in 2001. It was a cell phone account (2 year statue)  I had back in 1998. I still can't find the permissible purpose in that. *confused*

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Like I said...a toughy...I'm not aware of any court decisions one way or the other.   Neither the end of the 7 year reporting period for items on your credit reports nor the end of the statute of limitations for using the courts to collect a debt makes the debt go away.

 

Legally, you still owe the debt.  If I were a debt collector, I would argue in court that gives me permissible purpose to pull your reports to see if you have the ability to pay.

 

But...as @Clydesmom suggests...you can try disputing it with the CRAs.  Could be the CA would rather not be bothered.

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I would argue in court that gives me permissible purpose to pull your reports to see if you have the ability to pay.

 

@willingtocope

 

As a consumer I would argue my credit report is not an accurate barometer of my WILLINGNESS to pay a zombie debt even if I have the ability.  If they cannot file a suit or report the debt then there is NO reason for them to be in my credit report when all they can do is send a letter asking if I WANT to pay it.  

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File a complaint with the CFPB and it should be gone immediately.  Another option is to dispute the hard inquiry with the CRAs.  I had one from LVNV on a zombie debt.  I disputed it and stated there was no permissible purpose as the debt could not longer be reported.  It was removed in less than a week.

 

Okay, I just filed a complaint with the CFPB. Let's see how things go from here. Thanks again.

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@Tootsie88 sounds like a plan.

 

@Clydesmom see that's the problem.  I don't see anything in the law that recognizes the term "zombie debt".  And, yes, they could file suit, and, if you don't show up and raise the SOL as an affirmative defense or the court doesn't agree...they get a judgment.

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@Clydesmom see that's the problem.  I don't see anything in the law that recognizes the term "zombie debt".  And, yes, they could file suit, and, if you don't show up and raise the SOL as an affirmative defense or the court doesn't agree...they get a judgment.

 

@willingtocope

 

While the statutes don't use the term zombie debt is is recognized by the courts as out of statute debt that is beyond LEGAL means of collection.  Filing a suit past the SOL for doing so is a FCDPA and a violation of law.  

 

The argument is that they have NO need to do a hard inquiry to file a lawsuit.  They need to file the paperwork.  If they DID sue and got the judgment because the SOL was not raised then they would have a PP because of the judgment.  

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But their not iniatating a suit or threatening to. They are simply trying to collect on a 16 year old debt. When I told them to go pound sand and never call me again, the representative got salty and pulled a hard inquiry. When I was alerted by equifax that an inquiry was made, I called and spoke to a supervisor. He agreed that the representive shouldn't have pulled a hard inquiry and would have it removed within 3-7 days. It's been 6 weeks and a few emails back and forth promising regarding it to no avail.

I figured since they had no permissible purpose, as I understand it and the supervisor agreed, why the hold up?

And I find the law lacking with respect to zombie debts.

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