Unauthorized Hard Inquiries: What You Need to Know About Credit Checks You Did Not Consent to
You’ve just checked your credit report and noticed an inquiry you did not authorize. If you do not recognize this hard inquiry, you could potentially be at risk of fraud. You’ll want to investigate the inquiry immediately so that your credit score is not damaged in the future.
Here is an overview of a hard inquiry and what you should do to handle an unauthorized hard credit inquiry.
What Is a Hard Inquiry?
Also known as “hard credit checks” or “hard pulls,” hard inquiries are checks a financial institution makes on your credit before deciding to lend money to you. These inquiries often require your consent and take place when you apply for a credit card, auto loan, student loan, personal loan, or mortgage.
A hard inquiry could negatively affect your credit score, but a single one for a credit card is not likely to impact your score much. However, multiple inquiries (especially within a short amount of time) could significantly impact your score, as it looks like you are short on cash to financial institutions. If hard credit inquiries damage your credit score, the damage will disappear or decrease within two years of the inquiry showing up on your credit report.
How Do You Know if You Have an Unauthorized Hard Credit Inquiry?
You should check your credit score often to stay on top of unauthorized credit inquiries and fraud alerts. Every twelve months, you can obtain a credit report from one of the three credit bureaus (TransUnion, Equifax, or Experian). Or, you can use free resources from Credit Karma or Credit Sesame.
If you notice hard pulls on your credit that you did not consent to, you can demand the creditor remove the inquiry. If they do not do this, you can sue under the Fair Credit Reporting Act (FCRA).
How Do You Handle Unauthorized Hard Inquiries?
Because hard credit checks can have such an adverse effect on your credit history, you’ll want to take immediate action as soon as you suspect an unauthorized inquiry on your credit. Here are some things you can do when this happens:
Contact the Creditor
You can get in touch with the company that requested the inquiry and ask them to prove that this inquiry was real. If it was a reporting error, you could have them contact the credit bureaus to have it removed from your credit report.
Report the Fraud
If you suspect someone is trying to use your identity to apply for a loan, you’ll need to fill out an identity theft complaint form and affidavit from the Federal Trade Commission’s website. Then, you can send these forms to banks, creditors, major credit bureaus, and the police.
Freeze Your Credits
By reporting the potential fraud to the major credit bureaus, you’ll place a credit freeze on your account, which will restrict access to your credit reports until the matter is resolved.
Place a Fraud Alert
Ensure potential creditors will verify your identity before extending credit in your name by placing a 90-day fraud alert on your account with one of the major credit bureaus (that credit bureau is then required to notify the other two about the alert).
File a Dispute
It’s best to call the bureau or mail them a letter to dispute a hard credit inquiry. If you have proof the inquiry was fraudulent, it is relatively easy to remove. However, if the company claims it was valid, it can be much harder to dispute.
Hire an Attorney
If you’re positive the inquiry was not authorized by you and did not belong on your report, but the company refuses to remove it, it’s time to hire a credit report attorney. They can help you legally dispute an unauthorized credit inquiry under FCRA.
Disputing Hard Inquiries With a Credit Report Attorney
When reviewing your credit reports, do not ignore the credit inquiries section. If you miss an unauthorized hard inquiry, you could be exposing yourself to fraudulent activity that damages your credit score. Instead, catch the inquiry early and dispute it with the authorizing company and the credit bureaus.
If you need help with unlawful credit checks, get in touch with Garibian Law Offices. Our knowledgeable team can help you with everything from credit inquiry disputes to LLC formation in PA. Get a free consultation from a lawyer who can make a difference today!
