What to do About Unauthorized Credit Inquiries

Upset woman trying to dispute unauthorized hard inquiries on her credit report
Credit Report Issues, Fraud, Identity Theft No Comments

While trying to get a loan, you discover a credit inquiry you don’t recognize—a mysterious mark on your credit history that raises more questions than answers. What should you do? Here’s what you should know about unauthorized credit inquiries.

What is an Unauthorized Credit Inquiry

An unauthorized credit inquiry is a credit check conducted without your authorization or consent. This means an unauthorized party pulls your credit without a valid reason or explicit consent. An example of consenting to a credit inquiry would be when you apply for a job and sign a document allowing that employer to check your credit or background or when you get a loan and sign a document enabling the lender to check your credit history.

Impact of Unauthorized Credit Inquiries

Unauthorized credit pulls can significantly impact your credit score. They also raise concerns about privacy and compliance with consumer protection laws. In some cases, unauthorized credit inquiries can indicate fraud or identity theft.

Unauthorized Inquiry and Your Credit Score

Credit scoring models consider the frequency of credit inquiries on your credit report. For instance, credit inquiries comprise 10% of your FICO credit score. If there are a large number of recent credit inquiries, it can raise concerns for lenders and may impact your chances of getting approved for credit.

Dispute Unauthorized Credit Inquiry

Under the Fair Credit Reporting Act (FCRA), consumers have the right to accurate and up-to-date credit reports. If you discover an unauthorized inquiry on your credit report, it’s essential to address it quickly. 

  • Start by contacting the credit reporting agency to dispute the unauthorized inquiry. Provide any documentation or evidence supporting your claim that the inquiry was unauthorized.
  • You can also contact the company that made the inquiry and ask them for proof of authorization.
  • When you file a dispute with the credit reporting agency, they have 30 days to investigate and remove the unauthorized credit inquiry.
  • Suppose the credit reporting agency fails to investigate your dispute or remove the impermissible inquiry. In that case, you may have grounds for legal recourse.

Monitor Your Credit Report

In today’s world, where personal data is both valuable and vulnerable, it is essential to safeguard your credit report. Regularly monitor your credit history for unfamiliar inquiries or discrepancies. To obtain a free credit report annually, visit annualcreditreport.com and check your credit report from TransUnion, Experian, and Equifax. If you notice any unauthorized inquiries, take prompt action to protect your financial integrity and privacy.

Sue For Unauthorized Credit Inquiry

Seeking legal help from consumer rights attorneys, Francis Mailman Soumilas PC, can help assert your rights under the FCRA. Unauthorized credit inquiries can have far-reaching implications for consumers, affecting their credit scores and financial futures. 

If you have tried to dispute unauthorized credit inquiries that are still being reported or were denied credit due to these errors on your credit report, call us now at 1-877-735-8600 or fill out the free case review form.