Credit History/Insurance

[wishiknewitall]

Living in Illinois. Divorced after 24 year marriage in 2/2003, ex-husband's family owns the insurance company that handled all of our insurance policies (homeowners, car, etc.) Last week I received a copy of my credit report/history showing that this company had checked into my credit 5 times from 2/03 (twice in the month of the divorce)until present. Incidently, this is the only peculiar looking thing on my credit report ---everything else is outstanding.

I terminated all of my insurance with them in Feb, with the exception of homeowners because I was refinancing and was waiting for that to go thru before I added more paperwork to the pile.

I feel all of these "inquiries" into my credit look at the least suspicious, but am wondering if any insurance people out there can explain why insurance is legitimaly checked on for reasons other than issuing new policies. Obviously, I made it quite clear to them that I was no longer going to use them for my insurance needs.

In addition, I call the ex-inlaws, and they denied doing such checks and said they were all done thru the underwriter. I then called the underwriter and was told that only one of the checks was done thru them ---and it had to do with the refinancing, which I completely understand. Underwriting told me they were done thru the agent. Something sure sounds fishy to me.

Why are credit checks from insurance companies instigated other than for inquiring in regards to new policies?

Is there any way for a person to protect themselves in a case like this?

 

[tammy8]

So you got divorced AND cancelled all your policies (except homeowner's) with that agency in the month? Okay are you sure that all the hits were from that agency or from the new companies that you went with? Every new policy you get (auto, home. renters etc) shows as a different hit on your credit report. But they are usually "soft" hits and don't count against your beacon score.

Nonetheless, our company has put the fear of God in us about pulling credit without written or minimum verbal premission. I have no clue on how to track down who actually did the pulling, it is not right but then again it might not be worth the hassle and heartache of having to deal with an ex and his family. Good luck to you.

 

[JETX]

"Is there any way for a person to protect themselves in a case like this?"
*** It would appear that the in-laws were checking on you during the divorce.... possibly/probably to determine your financial standing to the benefit of the ex. And this is a violation of your rights as set by the FCRA (Fair Credit Reporting Act).

The applicable violation is (15 USC 1681b(a)(3):
"Sec. 1681b. - Permissible purposes of consumer reports
(a) In general
Subject to subsection (c) of this section, any consumer reporting agency may furnish a consumer report under the following circumstances and no other:
(3) To a person which it has reason to believe -
(A) intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer; or
(B) intends to use the information for employment purposes; or
(C) intends to use the information in connection with the underwriting of insurance involving the consumer; or
(D) intends to use the information in connection with a determination of the consumer's eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant's financial responsibility or status; or
(E) intends to use the information, as a potential investor or servicer, or current insurer, in connection with a valuation of, or an assessment of the credit or prepayment risks associated with, an existing credit obligation; or
(F) otherwise has a legitimate business need for the information -
(i) in connection with a business transaction that is initiated by the consumer; or
(ii) to review an account to determine whether the consumer continues to meet the terms of the account."


And you are correct, these probably illegal inquiries can affect your credit.

I would jump all over this one.
1) Immediately write a very strong letter to the CRA (Credit Reporting Agency) showing these inquiries. Give them the background on the divorce and relation to the inquirer. DEMAND that they investigate and take action against the violator.
2) I would write a very nice, professional letter (Certified RRR) to the insurance company and ask them to justify their actions as to the inquiries on your record. Give them 5 business days to respond.
3) Once you get their response, review it to see if it is valid. If not, or if you receive no response at all, I would seriously consider taking legal action against them. Their civil liability for this would be $1000 per incident.

The appropriate claim is that their actions have 'caused injury to your credit rating and credit score and is a violation of the above cited US Code.

 

[wishiknewitall]

Yes, Tammy...they all said ******* Insurance and I went with a totally different agency, even in another city, for my insurance needs so there's no confusion in the company who hit my credit scores.

It was a messy divorce (aren't a lot of them), with the ex being removed from the home by court order, in addition to being ordered to pay permanent maintenance. I have a boyfriend now and no doubt, he's trying to find some way to wiggle out of the maintanance by showing co-habitation via co-mingling of joint credit cards, etc.

I figured if nothing else I would need a paper trail so I emailed my ex-sister-in-law (the one who is basically running the company) early yesterday explaining how I had followed up with underwriting and requested that she clarify the hits that underwriting said came from her office.

Surprise, surprise ---I haven't heard any thing back from her yet. If I don't get a response by late Monday, I guess I'll go the route that JETX suggested and write the very nice, formal letter requesting that they justify their actions and follow up with the authorities.

I've also ordered copies of my credit reports from the other two companies so I'm probably in for more fun. Thanks a lot for your suggestions, it gives me some confidence that I wasn't just grasping for straws.