Is it illegal for a credit union to pull your credit 1 week AFTER closing your account?

Question

I had a credit union account. They inquired on my name through ChexSystems when the account was opened. A week later, they closed my account saying I was not eligible. Then 5 days later, they pulled my name through ChexSystems AGAIN. Since my account had been closed 5 days before the 2nd pull, there was no business relationship. Wouldn't that make the 2nd pull IMPERMISSIBLE and illegal? What are my rights? What should I do?

This account was not closed for cause and I never had any NSF activity with them or anyone else. My $100 check cleared, a week later they closed it saying I did not fall in the field of membership. Those answering that imply I was closed for cause aren't reading my question closely. There was no issue with my money being good. The issue was if I qualified by falling within their field of membership or not.

Answer 1

They had permissible purpose for the first pull since you tried to open an account with them.

If you disputed the closing of the account, or asked them why it was closed, they had permissible purpose.

If you owe them money for any reason, fees etc., or have another account with them, they have permissible purpose.

If the account is closed and you owe them no money, have no other accounts with them and did not dispute the closing of the account, then they did not have permissible purpose to pull the second time.

If so, you can dispute the second pull as having no permissible purpose and possibly file a small claims suit against them.

Answer 2

I work at a credit union. Check your account agreement from when you first opened the account. The fine print likely outlines what they can and cannot do in an unpaid closure situation... which would have shown up on chexsystems.

Also, understand that chexsystems and credit scores are two very different things. You must authorize a credit check, chexsystems is a completely different system that shows if you have account abuse of fraud reported at different financial institutions. There should be no damage to you from them checking again.

Most credit unions will reopen an account once an unpaid closure has been resolved. I would sincerely suggest speaking with the individual that opened your account or a member service representative. It may be an oversight of some sort.

Answer 3

What are your damages? You could sue them, I suppose but you would have to prove damages and a general query on your report doesn't hurt your score. It's the query's when applying for credit that hurt your score and I'm guessing that this was one of those routine checks that no other creditor even sees.

There are two categories of queries. One is when you're applying for credit and it even tells you on the credit report that people checking your report will see those. The other category is a general query that no one sees except you. I'm guessing that that's where their query was.

I guess you could go in to the Credit Union and stamp your feet and demand your rights but I doubt it will get your very far. When they pulled your report 5 days later, you were on some computer query that just happened to go through that date or that's the date the reporting company reported it but it is really not a big deal. If you want to file a complaint with the FTC, by all means do so.

Answer 4

they did no longer could grant you any time formerly reporting to ChexSystem and shutting the account. you want to flow to the credit union and pay what you owe and need they're going to assist you reopen the account, yet do not anticipate it. i think this isn't the first time that you've overdrafted the debts. again and again overdrafting any economic corporation account will eventually get the account closed with out strengthen note.

Answer 5

No. You should pay them. They're obviously trying to collect.