Financial Channel

A few months ago I opened a SECOND checking account w/Citizens Bank. I've had checking/savings/IRA w/them for ten years. I was baffled when they pulled a hard inquiry on EQ, since there was no credit line or CC involved w/the account and I've had a ten year history w/them.

The branch manager assured me it was supposed to be a soft inquiry, but after a month, it sat on EQ. So I wrote a letter to the address on EQ's report, quoting the branch manager and the reasons I stated above, asking the inquiry be removed.

Two days ago, it came off EQ. Great! Then I got this letter, which sends a completely different message. It is chock full of misinformation, so much so that I'm tempted to write back. Remember, I've already gotten what I want - the inq has been deleted. I just worry that by attempting to educate this person, I may see it reappear.


Dear Mr. Dans,
After reviewing your recent correspondence, we verified the information reported to Equifax is correct.

We are enclosing a copy of our signature form used to open deposit accounts. By signing this form, you authorized the credit inquiry; and according to Equifax, your credit file is correct and we cannot request deletion.

Sincerely,
A. Dickweed
Consumer Confusion Operations


They sent a form, which I'm pretty sure I've never signed, that has a highlighted line -
Each Signatory authorizes [premature end of line-to be filled in?]
to obtain credit information from any source, including but no limited to a check protection service.


To answer the obvious question, no, they did not send me any form w/my signature. And I did sign two forms in opening this second checking account, but neither of these forms looked like the form they sent me. I'm pretty sure there was no language like this on the forms I sent, but I can't be sure. What I can be sure of is whatever forms I signed ten years ago when I opened the account did not look like this - it was a different bank that was taken over by Citizens and they were very, very small. I doubt they would have done such a thing ten years ago, but obviously I don't have the paperwork and can't be sure.

If they hadn't deleted - or perhaps Equifax did simply because their message was so confusing - I would be all over this. I don't see the point now, except to vent a bit and try to educate someone.

Anyway, I'm posting this for a few reasons. The first is just to solicit opinions from folks as to what they might do and why. The second is to let everyone know that ANYTHING you do with your checking, savings or IRA accounts could result in a hard inquiry, and the third is to let everyone know that if you deal w/Citizens Bank, it will result in a hard inquiry.
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The branch you opened the accounts at should have copies of the documents you signed. Go look at them.

If you in fact did sign something, BTW they really don't need your signature since you have a "business" relationship" with them. ask them to re-code it as a soft.

Obviously, we have an existing relationship and a soft inquiry - Account Review - is the correct way to do this. In fact, I was assured by the branch manager where I opened this second account that was supposed to be a soft inquiry.

My point was that if I was opening a line of credit or credit card w/them, that would warrant a hard inquiry.

Since I got the inquiry removed - intentionally or not on their part - I'm reluctant to educate them any further.

THEY CAN PULL...THEY DON'T HAVE TO!!!

TELECHECK type companies is a different matter...it does not hurt your F.I.C.O.

George, if they pulled telechex, I would not care. First, I've got nothing to worry about and second, as you said, there's no effect on FICO.

THEY "CAN" THEY DON'T HAVE TO...IT IS NOT REQUIRED BY LAW!!!!!

They pull out the LEGAL DEAL...they they have PP

THEY HAVE FIRST-HAND KNOWLEDGE THAT THEY ARE HURTING YOUR F.I.C.O. SCORE...BUT THEY PULL ANYWAY!!!

I got a "PRE-APPROVED" no HARD CLI from FIRST USA (now BANK ONE)...2-3 months later I did a BT...they did a HARD...they pulled their PP GARBAGE!!!

The CREDIT LIMIT was already on the account for 2-3 months...I didn't even get WITH-IN $1,000 of the TOP END!!!

Originally posted by DanS
George, if they pulled telechex, I would not care. First, I've got nothing to worry about and second, as you said, there's no effect on FICO.

Dan

If you have an account with them they are entilted to pull a CR. They can code it as a soft or a hard. It is their choice alone. Since you already have the result you wanted, I would drop this one. As you stated, responding could end up putting the inquiry back on.

In all of the cases mentioned above, it sounds like permissible purpose for taking your business elsewhere.

Before taking your business elsewhere, I would try to get the hard inquiries removed by sending a well worded message to them via Planet Feed Back (PFB). You should make a point that it would be better business practice to pull a soft inquiry (rather than a hard inquiry). Why should you (an loyal customer) suffer a drop in your FICO (and possible financial penalty) for doing business with them.

http://www.planetfeedback.com/consumer/

BTW, the banks could argue that they had PP if they are providing check cards.

I've already got it removed, whether by design or accident, so I don't need to threaten anything.

I thought switching accounts, but wherever I go I'd get ANOTHER inquiry... aarrghh..

As I've raised in another thread - which nobody seems to care about, called Enough! - there needs to be clear laws about when/how a hard and soft happens. It is their perogative and to use a technical term, it sucks.

Originally posted by DanS
... there needs to be clear laws about when/how a hard and soft happens ... The law doesn't make a difference between "hard" and "soft". But it does state the PP very clear. George is right - they don't have to, but until you have an open account with them, or you have a balance on your account, they have the PP to pull a hard.

Read "Inquries, PP and the CIA Warning (http://consumers.creditnet.com/straighttalk/board/showthread.php?threadid=52804)" ...

ALWAYS ASK IN ADVANCE ABOUT HARD INQUIRES FOR NON CREDIT ACCOUNTS!!!!

Originally posted by DanS
I thought switching accounts, but wherever I go I'd get ANOTHER inquiry... aarrghh..

I use Washington Mutual ... No Inquiry, hard or soft.

Originally posted by GEORGE
ALWAYS ASK IN ADVANCE ABOUT HARD INQUIRES FOR NON CREDIT ACCOUNTS!!!!

A great deal of this is related to exactly that - asking before, getting bad information and then being told that information was incorrect.

I was told by the branch manager there would be an inquiry and it would be a soft inquiry (AR), since I already had an account.

When I told her it was a hard, she told me that wasn't possible. I gave her a copy of my EQ CR (just inquiries, of course:) and this is where the fun began.