Question for Marvbear

[mindcrime]

I applied for financing through a dealer. The rate offered through their main bank was worse than my current loan. I declined the offer and arranged financing through my CU at a much lower interest rate.

 

A few weeks later I received a letter in the mail from the bank through the dealer telling me "we are unable to approve your request", and goes on to list the reasons why.

 

So, my question is, are banks required to send this notice by law regardless of why the loan was not carried forward? Just seemed to me that the letter is indicating that I wasn't credit worthy, when I really am, and truth is it was me who declined them, not this way around.

[mk_378]

If you're approved but not at their best APR, that's still adverse action based on your credit report, so the letter has to be sent.

[MarvBear]

So, my question is, are banks required to send this notice by law

 

Yes.

 

If a loan is submitted on your behalf, and not approved as submitted, then the lender is required to send you an Adverse Action Notice.

 

Also, in this case, the Dealership would have been required to present you with an Adverse Action Notice.