Wrongful Credit Inquiries and Your Rights Under the FCRA
A credit inquiry is a record of someone reviewing your credit. A hard inquiry, tied to an application, can lower your score for a time; a soft inquiry does not. The problem is wrongful reporting: a soft inquiry mislabeled as hard, or a hard inquiry you never authorized. Under the Fair Credit Reporting Act, you can dispute an inquiry you did not authorize and, if it is not corrected, pursue legal remedies.
Can Inquiries Affect Your Credit Score?
Yes, but only some of them. A hard inquiry, which is tied to a credit application, can lower a score by a few points for a limited time. A soft inquiry does not affect a score. The real issue arises when an inquiry is reported incorrectly: when a soft inquiry is recorded as a hard one, or when a hard inquiry appears that was never authorized.
What is a soft credit inquiry?
A soft inquiry happens when you or an authorized party views your credit for a non-lending purpose. Common examples include:
- Checking your own credit score through a monitoring app.
- A card issuer reviewing your report to offer a preapproved deal.
- A background check by a potential employer.
- A routine review of an existing account.
Soft inquiries are informational and do not affect a credit score. When one is recorded as a hard inquiry, however, the result can be an unjustified score reduction.
What is a hard credit inquiry?
A hard inquiry is tied to a credit application. Lenders run them when a consumer applies for credit cards, auto loans, mortgages, personal loans, private student loans, or credit line increases. A hard inquiry can affect a score by a few points. It remains visible on a report for up to two years, but generally affects the score for about one year.
Problems arise when a hard inquiry appears without the consumer's knowledge or consent, for example when a hard pull is recorded although no application was made, or when identity theft produces multiple unauthorized inquiries.
When is a credit inquiry wrongly reported?
Wrongful reporting of inquiries takes two common forms: a soft inquiry mislabeled as a hard one, and a hard inquiry that appears without authorization. Either can lower a score, lead to a credit denial, or signal a deeper problem such as identity theft. A credit report entry must be accurate, timely, and authorized; when it is not, it may be grounds for a dispute.
What are your rights under the FCRA?
The Fair Credit Reporting Act gives a consumer the right to dispute inaccurate or unauthorized information, including credit inquiries. When a consumer files a dispute, the law sets a reinvestigation process, generally within 30 days, and requires that information that cannot be verified be corrected or removed. New York consumers may also have rights under the New York Fair Credit Reporting Act (General Business Law Article 25).
How Petroff Amshen Helps
Under the FCRA, the consumer files the initial dispute. Where the law is then violated, for example when a verified error is not corrected or an unauthorized inquiry remains, Petroff Amshen LLP takes legal action. The firm reviews the credit file, evaluates the prior dispute, and pursues claims in state and federal courts where the Fair Credit Reporting Act has been violated. This is not credit repair. Petroff Amshen LLP is a New York law firm that litigates FCRA claims.
“Our role is to make sure people understand what is on their credit report and what the law allows when an inquiry is reported wrongly. When a dispute does not fix it, that is where we act.”
Serge F. Petroff, Founding Partner, Petroff Amshen LLPFrequently Asked Questions
Authoritative sources: 15 U.S.C. § 1681 (FCRA) · AnnualCreditReport.com
This article is general information, not legal advice. Reading it does not create an attorney-client relationship.