Can Consumers Challenge Credit Inquiries They Didn’t Authorize?

When consumers find an unauthorized credit inquiry on their credit report, they have legal rights to dispute it and protect their financial interests. Unauthorized inquiries can negatively impact credit scores, so it's important to act quickly to resolve any inaccuracies or potential fraud.

Steps to Challenge Unauthorized Credit Inquiries:

1. Review Your Credit Report: Regularly check your credit report for any unfamiliar or unauthorized inquiries. Consumers are entitled to one free credit report per year from each of the three major credit bureaus (Equifax, Experian, and TransUnion) under the Fair Credit Reporting Act (FCRA).
2. Identify the Unauthorized Inquiry: Verify that the inquiry wasn’t made by you or with your consent. In some cases, an inquiry could be a result of an application for a loan or credit card you forgot about or did not authorize.
3. Dispute the Inquiry with the Credit Bureau: Contact the credit reporting agency to dispute the unauthorized inquiry. Provide any evidence that the inquiry was not authorized by you. The credit bureau has 30 days to investigate the dispute and respond.
4. Contact the Creditor or Lender: If you identify the company responsible for the unauthorized inquiry, contact them directly to request clarification or demand removal. If the inquiry was made due to fraud or identity theft, notify the company of the issue and request that they take appropriate action.
5. File a Fraud Alert or Credit Freeze: If you suspect identity theft, place a fraud alert or freeze your credit with the three major credit bureaus to prevent further unauthorized access to your credit report. This action alerts creditors to take extra steps before extending credit in your name.
6. Seek Legal Remedies: If the issue is not resolved through the credit bureaus or the creditor, consult with a lawyer to explore further legal action. Under the FCRA, you have the right to sue for damages caused by unauthorized inquiries, including any negative impact on your credit score.

Legal Protections:

• Fair Credit Reporting Act (FCRA): Under the FCRA, consumers can challenge any unauthorized or inaccurate credit information on their reports, including credit inquiries.
• Consumer Protection Laws: If you are a victim of identity theft, consumer protection laws provide additional rights to help resolve fraudulent inquiries.

Example:

If a consumer notices an inquiry from a credit card company they did not apply to, they should:

• Dispute the inquiry with the credit bureau by explaining it was unauthorized.
• Contact the credit card company to clarify and request the inquiry be removed.
• If identity theft is suspected, place a fraud alert on their credit reports and monitor for further signs of fraud.