Credit Inquiry

Having worked for a car dealership, I will tell you they put your credit application in a deal bag and it is probably filed in a box somewhere in a back room. They really don't want to have to digging to find it. And so their response is such that they are basically "putting the ball in your court", so to speak (because 8/10 people would probably give up and not bother them again.)

Problem for you, really, is that the "dispute" process outlined in the FCRA doesn't apply to inquiries (it applies to data furnishers and their tradelines). And so the dealer really is under no obligation to provide you with proof that you authorized the inquiry.

I know that doesn't seem "fair", but the bottom line is that: 1) it is illegal for them to pull your inquiry without permissible purpose; and 2) they either had permissible purpose or they didn't. Since there is no "dispute" process, the only time they would legally be required to furnish evidence of their permissible purpose would be if you sued them in court for pulling your credit without permissible purpose. (Subsequently, I keep using the term "permissible purpose" because they really do not need your signed authorization. If you filled out a credit application or requested their help in financing a vehicle through the phone or their website, that also counts as permissible purpose for the FCRA).

Now you could go to the credit bureau(s), and state that you never applied for credit or financing through the dealership. Since the bureas don't know what type of proof the dealership has, and they are afraid of getting sued, they might send a letter to the dealer and demand proof that you applied for credit. If the dealer doesn't provide, then the bureaus might remove that inquiry.

Woo Hoo! I got a reply...Thank you!!!!! I soooo needed your help!!!
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[FONT=Calibri][COLOR=black]Seriously, thank you for your response. I think I'm really confused now though... : (Doesn’t the following apply to credit inquiries? [/COLOR]
[COLOR=black] "Any person who procures a consumer report under false pretenses, or knowingly without a permissible purpose, is liable for $1000 or actual damages (whichever is greater) to both the consumer and to the consumer reporting agency from which the report is procured."

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[COLOR=black]I thought after all the research I've done, articles I've read and regulations laws that I've printed and read again...that I was becoming pretty dang knowledgeable. You have enlighted me. Ugh![/COLOR][COLOR=black][/COLOR]
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[COLOR=black]Thanks again for your help and quick reply. Oh! BTW-I did not under any circumstances; allow them, ask them, or give them any reason to run my credit. : )[/COLOR]



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So far all of my credit inquiry letters are coming back with the reply-"Please supply us with your ss# and/or additional information.

Do I have to send this information?

[FONT=Calibri][QUOTE]BTW-I did not under any circumstances; allow them, ask them, or give them any reason to run my credit. : )[/QUOTE][/FONT]

I apologize for making assumptions. In 6 years of pulling people's credit reports, I've never had one legitimate claim that our inquiry was unauthorized. Oh yes, I've gotten a lot of letters claiming we were unauthorized and demanding removal of the inquiry, but in every case we were indeed authorized and have proof. So again, I apologize for assuming that you had actually applied for car financing through the dealer.

[FONT=Calibri][QUOTE]"Any person who procures a consumer report under false pretenses, or knowingly without a permissible purpose, is liable for $1000 or actual damages (whichever is greater) to both the consumer and to the consumer reporting agency from which the report is procured."
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That is absolutely true.

If they have pulled your credit without permissible purpose, you can certainly write letters and demand they remove their inquiry from your credit report. Or if you want $1000 you can sue them....

In my comments above, I just meant that if they receive your letter and throw it in the garbage without sending you back any proof of their authorization, that in itself is not against the FCRA (if, and supposing that they indeed had permissible purpose.).

You would think if they were unauthorized, then they would rather heed your letter than get sued. Or if they were authorized, then they would send you their proof just to shut you up (no offense).

But ultimately, if you have to sue them, then they either have proof or they don't, and they would show it to the judge. If they don't have proof then they'd lose the case.

[COLOR=black]LOL! I was sorta expecting the "shut up" reply, myself. Instead, I just keep hearing...send us proof that we ran your credit. So my question is- what information do I have to "legally" give them when I ask them to remove the inquiry? Do I have to give them my ss# or anything?[/COLOR]

[COLOR=black]I hope I didn't come across harsh when I said I didn't give them permission to run my credit. I just wanted to make sure I made you aware I had NOT given them permission. I'm guessing...I made my point. ha ha Agai, I'm sorry if I came across wrong.[/COLOR]

[COLOR=black]I appreciate your help!!!! But, just to clarify-I need to know how I should respond to these letters. And if I do have to respond... what information am I required to give them?[/COLOR]

No not harsh at all :) I was hoping I didn't come across harsh by initially defending the dealer to a degree ....

I'd say you're in somewhat of a catch-22 because there are no actual rules/procedures established by law for removing unauthorized inquiries (other than it being illegal, of course, to make an unauthorized inquiry). And so, you are not "legally" required to give them any information, because they are the ones who broke the law.

BUT the problem on the dealer side is that, for them to be able to remove an inquiry they do need your name, address, SSN and DOB (the bureaus will require this info from the dealer in order to perform maintenance on your credit report). They also need to be able to lookup that inquiry they made. Most computer systems lookup by customer SSN, so they may not be able to go just by your name. So if you don't give them that info, then they won't be able to remove the inquiry.

I can think of three ways to handle this:

1) Personally, I'm kind of like that Todd Davis/LifeLock guy who puts his SSN all over the place -- I'm not worried about other people having or using my SSN. So I would send a copy of my credit report to the dealer (circling the inquiry they made), along with my name and SSN, and a harsh letter stating that: A) you never authorized the inquiry or initated any credit transaction through them, B) their pulling your credit is therefore against the law; C) you demand them to remove the inquiry from your credit report; and furthermore, D) if they don't, then you will file suit against them for their willful violations of the FCRA.

2) If they keep giving you the runaround, or if you simply don't want to give them your personal info, then you can go directly to the credit bureau and tell them you never authorized the inquiry. (But the bureaus will also want your Name/Addr/SSN). The bureau will then send a letter to the dealer and request proof of your authorization. If the dealer doesn't provide the proof, then the bureau will remove the inquiry.

2A) Another thought I just had is that many dealers use an intermediary processor to pull their credit reports. Look at your credit report and if it says something like NOWCOM/XYZDealer, then that means the dealer is pulling their reports through a company like Nowcom. Since the middle-man is ultimately responsible for its dealers actions, they usually take unauthorized inquiries very seriously; because if their dealers are breaking the law, then the bureaus can terminate their service which would put them out of business. So if your credit report does say something like that, you could try to file a complaint directly with the intermediary.

3) Lastly, and if all else fails, ultimately you could file a lawsuit. If the dealer loses, they'd have to pay your court costs, legal fees, $1000, plus the court would compel them to remove their inquiry.