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Bill Me Later placed a hard inquiry on my credit report, stopping house buy


I have been an eBay user since 2001.

I have used Paypal since that time.

I opened an account with Bill Me Later in 2011. My credit limit is $4,800. I have paid off previous balances in full.

On October 31, 2012, I purchased an item on eBay and used Paypal to complete the purchase.

I was re-directed to Bill Me Later, which offered promotional financing.

Since I had an account and excellent history with Bill Me Later, I accepted the offer and completed the purchase.

The next day, Experian reported that a hard inquiry had been placed on my credit report by Bill Me Later.

I am in the process of purchasing a house now. My credit score was up to 749 before Bill Me Later placed a hard inquiry on my report. My mortgage broker is furious and does not know if I will still be approved by my lender.

I have spoken to Bill Me Later representatives 4 times today. All of them said that “Bill Me Later does not make hard inquiries on established customers”. But when told that you did, they acknowledged that this was an error on Bill Me Later’s part. They also stated that they would contact Equifax to get the inquiry removed.

Yesterday, I filed a dispute with Equifax. Today, I spoke with Equifax. They have received NOTHING from Bill Me Later. They told me that when and IF they receive a request from Bill Me Later, it will take 3 days to update my credit report.

NO ONE that I have spoken to at Bill Me Later has the authority, apparently, to extend the request to Equifax. If no one has the authority, then how am I going to get my credit report updated? How am I going to purchase my house?

I have been a customer of yours for over 12 years. I am being treated terribly and I cannot get a resolution to this issue. No one will contact Equifax and no one will resolve the problem.

I filed a complaint with the California Consumer Protection Agency this morning. I will file a lawsuit against Paypal in Civil Court if I cannot purchase my house. If interest rates go up in between today and when (and IF) I am locked by the lender, I will take the difference in dollars to the Santa Clara
County Small Claims Court.

Please let me know how you plan to correct this error immediately and how you intend to revise your company’s policies to avoid such errors in the future.

Posted: November 7, 2012 at 4:01 pm


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5 thoughts on “Bill Me Later placed a hard inquiry on my credit report, stopping house buy
  1. FlyBye on

    Un fucking believable talk about getting screwed by paypal. I really hope you’ll be able to buy your house despite all the BS they are putting you through. I had paypal do a credit check on me that I was never informed about, now it didn’t affect me other then the fact that I had not authorize it and I didn’t like it, pissed me off. But you stand to lose a lot.

  2. Carolyn on

    Same situation – Trying to buy a house and all of the sudden last week I got a hard inquiry on my credit report from Bill Me Later. I have a paypal account but have never requested Bill Me Later. Have to start the process tomorrow. Hope it gets cleared up quickly…

    • Amy on

      This also happened to me. I never even requested Bill Me Later. Paypal took the liberty of running a credit inquiry and sending me Bill Me Later offers daily for weeks. Cost me 20 points on my score, discovered by our mortgage underwriter. Unbelievable. And unethical. Closed my account and will never use Paypal again.

  3. jack on

    Same for me! I just found out that there is an inquiry on my credit score by Bill Me Later, but I never ever requested this service and I will never do!
    I sign-up PayPal because I needed it for eBay, but I’m going to cancel both.
    It is unacceptable that such things can happen.

  4. Appaiah on

    I have been a victim recently of un-authorized credit inquiry which effected my credit score. Also called Bill me later to report this malpractice, they acted as if they are not aware of this and insisted that they always take permission before approving the limit. Which did not happen in my case. I would have never applied for Bill me later if this was so