Jump to content

Sign in to follow this  
mfarmer

Already pre-approved - any risk to letting dealer attempt better financing?

Recommended Posts

Wanted to also say the only documents I had to show to dealer was insurance proof and drivers license. Cap one didn't ask for anything, and I am self employed and said so on the Cap One navigator App.

Share this post


Link to post
Share on other sites

Gray, would you let me know if you do get any more pulls or... if in a week, you receive none?

​I'm now up to 5 HP and PISSED:
​- EQ Dodge Dealership

- EQ Cap One

- EX Dodge Dealership

- EX Cap One

- EX Chrysler Capital

 

When you fill out a credit app allowing them to pull credit they will almost all the time.

You can't dispute a HP you signed off on.

 

I didn't sign off any any HP expect for Cap One; was clear with everyone that I was financing ONLY through Cap One and specifically instructed them not to make any further INQs.

 

I was willing to tolerate the 2 dealer HPs, with the assumption that it was some "patriot thing," but... if that's not true AND today upon the FIFTH HP notice, now from Chrysler, I'm pissed.

​I've got one call into the dealer and have spoken with the salesman and finance manger, both of whom recall our discussion and my instructions that I'd be using Cap One and did NOT want any HPs from dealer.

​Finance manager has promised to resolve the matter, but I intend on moving quickl on my side:
- Phone complaint demand for them to remove all non-Cap One INQ (completed 2/25 9:18a)

- Written complaint and demand to remove all non-authorized INQ (TBD)

- BBB complaint

- CRA dispute

- AG complaint

- Intent to sue

- Small claims

 

Carried to the end, I may only get the max small claims of $5000 (which would help pay for the car); I may only get blood from making someone from the dealer blow a day sitting in court...

Share this post


Link to post
Share on other sites

Yes, I will be checking myfico later today. Didn't you say in an earlier post they also pulled TU?

 

Dammit... yea. Was just reacting to the MyFICO alerts and forgot about CreditKarma's report that TU had been pulled too.

 

Here's the accurate list

 

7 HPs:

​- EQ Dodge Dealership

- EQ Cap One

- EX Dodge Dealership

- EX Cap One

- EX Chrysler Capital

- TU Dodge Dealership

- TU Cap One

 

Share this post


Link to post
Share on other sites

This may prove unpopular but how about just being happy to be approved for the fantastic rate you got?

If I am buying a $40k car a 1% difference in interest is $1,058. If OP could get promo financing and save $3k wouldn't that be worth it?

Share this post


Link to post
Share on other sites

This may prove unpopular but how about just being happy to be approved for the fantastic rate you got?

 

I always appreciate an alternative perspective. Thank you for adding that in.

 

Here's the deal: I'm VERY happy with Capital One. They did an outstanding, bang up job. I took 3 pulls from them and... although I'd have wished they could have just taken one, I'll take it (and continue to be happy about it).

 

​However, with the dealership - remember them? the ones that are making $$$ off of my trade in, off of my purchase, off OF that Cap One financing? - I was clear about what I wanted. They were clear about what they promised: Cap One was handling the financing; they were NOT to pull additional credit.

 

​I'd just like what I paid the dealer my good money for. I'd just like what I was promised by the dealer.

 

​By all mean: bargain up front for what you're offering. If dealership had told me outright that's their deal, 7 credit pulls, then I could have made my decision to buy from 'em... or not.

 

​But promising one thing, lying, then doing something different doesn't sit will with me.

Share this post


Link to post
Share on other sites

And no... this is a well known shyster move, complained about ad infinitum. It's a crap, self-interested move by the dealership to see if there's a way *they* can make more money off of you.

Sure, if it's an above the water, transparent, "let's both see if we can better our position - we'll make more from our financing; you save a bit because we lowered your APR," then sure.

​But it was not.

​If you've read through the entire thread you're aware that I have already had one Visa shut down for too many INQ; that I've been turned down for 2 other accounts for too many INQ. I DON'T WANT and DIDN'T AGREE to additional INQ.

​I bargained for no more INQ. I was promised no more INQ. You're damn right that I expected NO MORE INQ.

Share this post


Link to post
Share on other sites

Trust us when we say it wasn't the inquiries that got you declined. Low to mid 600's is VERY hit and miss territory and rightfully so as it is indicative, positive proof even of a checkered financial past.

 

I've been there before and it sucks. To be so close yet so far. Sometimes you'll get a break and think you've made it only to have your wings melt for flying too close to the sun.

Share this post


Link to post
Share on other sites

Have covered that idea elsewhere, but tl;dr: whether in isolation or combination... if it's a neg. w/in your contol... why not control it? Regardless the denials here are not the issue: a business keeping it's promise - the failure of which has already caused damage in a 5 point FICO decrease - is.

I expect them to rectify their mistake.

Share this post


Link to post
Share on other sites

UPDATE --- DEALER DID PULL! Got a CK alert 2 hours ago saying Credco/Toyota HP. I called the finance manage immediatly. He told me it was for verifying ID purposes, can't sell a car or issue title to a a fraudulent person? Something to that effect? I read this on Edmunds after some further research this afternoon, read what it says about the Patriot Act in particular...

 

Federal consumer protection and national security laws require that dealers verify the identity of buyers, according to Bradley Miller, associate director of legal and regulatory affairs for the National Automobile Dealers Association (NADA). The Patriot Act has requirements meant to counteract terrorists who might use car buying to launder money. Other federal regulations, known as Red Flag Rules require dealerships to protect against identity theft. Pulling a credit report is a quick way to verify that the person presenting himself as a buyer isn't actually trying to steal someone else's identity.

In a legal sense, a dealer only needs a "permissible purpose" to access a person's credit, Miller says, and there are a number of such instances. Usually, it occurs when a consumer wants to take advantage of low-interest financing via the dealership. But it would also be permissible, for example, for a dealer to ask for a credit report before accepting a personal check from a customer. It may be the dealership's only hedge against taking a bad check when sales take place on evenings or weekends. That's when banks are closed, and it's difficult to verify that the funds are available.

4. Can the dealership run my credit without my knowledge?

It's not supposed to. The dealership is required to get your permission to run a credit report. Usually, the salesman asks you to sign a credit application. If you are shopping over the Internet, you can sign the application and send it back electronically, says Cutright, who managed Internet sales departments during his car-selling career.

A dealer does need a Social Security number to run a credit report. And in a few instances, dealers have asked for the customer's Social Security number, telling them that the Patriot Act required them to do so. Then the dealer used the number to pull the customer's credit report without permission.

In fact, the anti-terrorism law only requires a Social Security number for a cash car purchase of more than $10,000. It does not require a dealer to review a credit report, say attorneys from both NADA and the National Independent Automobile Dealers Association.

Edited by graymidday

Share this post


Link to post
Share on other sites

5 points on FICO is literally like condensation building up on a cold beverage. You DO know just how variable FICOs are, don't you?

 

 

If you can get them to remove an inquiry or two, great. But don't go into this with the impression that you're gonna get beaucoup bucks for it.

Edited by Zobelle

Share this post


Link to post
Share on other sites

5 points on FICO is literally like condensation building up on a cold beverage. You DO know just how variable FICOs are, don't you?

 

 

If you can get them to remove an inquiry or two, great. But don't go into this with the impression that you're gonna get beaucoup bucks for it.

 

Thanks, Zo. Bucks aren't the goal. Holding a business to honest business practices and me getting what I negotiated for and was promised, is.

 

UPDATE --- DEALER DID PULL! Got a CK alert 2 hours ago saying Credco/Toyota HP. I called the finance manage immediatly. He told me it was for verifying ID purposes, can't sell a car or issue title to a a fraudulent person? Something to that effect? I read this on Edmunds after some further research this afternoon, read what it says about the Patriot Act in particular...

 

Federal consumer protection and national security laws require that dealers verify the identity of buyers, according to Bradley Miller, associate director of legal and regulatory affairs for the National Automobile Dealers Association (NADA). The Patriot Act has requirements meant to counteract terrorists who might use car buying to launder money. Other federal regulations, known as Red Flag Rules require dealerships to protect against identity theft. Pulling a credit report is a quick way to verify that the person presenting himself as a buyer isn't actually trying to steal someone else's identity.

In a legal sense, a dealer only needs a "permissible purpose" to access a person's credit, Miller says, and there are a number of such instances. Usually, it occurs when a consumer wants to take advantage of low-interest financing via the dealership. But it would also be permissible, for example, for a dealer to ask for a credit report before accepting a personal check from a customer. It may be the dealership's only hedge against taking a bad check when sales take place on evenings or weekends. That's when banks are closed, and it's difficult to verify that the funds are available.

4. Can the dealership run my credit without my knowledge?

It's not supposed to. The dealership is required to get your permission to run a credit report. Usually, the salesman asks you to sign a credit application. If you are shopping over the Internet, you can sign the application and send it back electronically, says Cutright, who managed Internet sales departments during his car-selling career.

A dealer does need a Social Security number to run a credit report. And in a few instances, dealers have asked for the customer's Social Security number, telling them that the Patriot Act required them to do so. Then the dealer used the number to pull the customer's credit report without permission.

In fact, the anti-terrorism law only requires a Social Security number for a cash car purchase of more than $10,000. It does not require a dealer to review a credit report, say attorneys from both NADA and the National Independent Automobile Dealers Association.

 

Fascinating. And much appreciation for updating the topic.

 

​I will be curious how *many* pulls you end up with. (Hell... I'll be curious how many pulls _I_ end up with.)

 

​The whole Patriot Act thing now has me curious to do a little more reading.

Share this post


Link to post
Share on other sites

 

Yes, I will be checking myfico later today. Didn't you say in an earlier post they also pulled TU?

 

Dammit... yea. Was just reacting to the MyFICO alerts and forgot about CreditKarma's report that TU had been pulled too.

 

Here's the accurate list

 

7 HPs:

​- EQ Dodge Dealership

- EQ Cap One

- EX Dodge Dealership

- EX Cap One

- EX Chrysler Capital

- TU Dodge Dealership

- TU Cap One

 

 

Fico will count the 7 HPs as ONE since they were presumably done within a 14 day time window.

Share this post


Link to post
Share on other sites

mfarmer: did you sign a risa at the dealership where you purchased the vehicle?

 

Yes, seller/creditor is listed as Dodge Dealership.

 

​Addt'l Info from Capital One:

 

"Using Auto Navigator at a Dealer

"When you visit an eligible dealer, show them your Auto Navigator Financing Certificate, fill out a credit application, and provide any information needed for review to complete your financing. A credit application at the dealer will result in one or more inquiries posted to your credit file. After negotiating purchase terms and receiving dealer credit approval, you will sign a contract with the dealer reflecting both your purchase and financing terms. Your purchase will result in a retail installment contract with the dealer as the original creditor. See our FAQs for more information."

 

​"How do I use my Capital One® Auto Navigator pre-qualification offer?

"Your pre-qualification offer comes into play after you choose the vehicle you want to buy and negotiate the price and other purchase terms with the dealer. The dealer will ask you to complete a credit application that allows the dealer to find financing for you and will typically send that application to several lenders, including Capital One. When we receive your application, we will give the same financing terms as those in your pre-qualification offer, as long as the information you submitted online is consistent with the information submitted by the dealership. If the dealer offers you financing from another lender, you can compare those terms with your Capital One offer.

 

"Knowing your terms in advance allows you to take control of your financing decision. To complete your vehicle purchase using your offer, you will sign a retail installment contract with the dealer as the original creditor. The retail installment contract will include your purchase and financing term and will be assigned by the dealer to us."

​(emphasis added by OP)

 

Faaascinating.

 

​I suppose 2 things:

- The downside of Capital One making it such an easy process was... I didn't read every single FAQ and paragraph; and

- I'm unsure if the Dealer didn't explain this well (telling me that they would not be running additional credit checks, then actually running them); the various players at the Dealer didn't communicate well with each other (a Manager performing additional credit checks, but not communicating to the salesperson and Finance Manager so they were accurate and communicated that with me) or they just didn't think.

 

I like to assume the best about people so take responsibility for not having read the whole process myself; and assume it was purely poor communication at the Dealership with being told one thing from the Salesperson and Finance Manager... when someone else did what Cap One said was likely to happen.

 

It appears that, as Zobelle offered... perhaps I should just be happy I got financed at such a low rate.

 

Edited by mfarmer

Share this post


Link to post
Share on other sites

I use Cap One. I know all about them. If you signed a RISA at the dealership, then you are s.o.l. with all those inquiries.

Share this post


Link to post
Share on other sites

Think I will go ahead and block all 3 of my reports to be on safe side. Like I said my finance guy said it was ID verification and it was one pull. If the dealer says they won't pull after you ask them not to, then they shouldn't. For me it's not a big deal, but I can see how it's indeed not good business practice to tell a customer one thing and do another. Freezing my reports to be safe from any additional inquires.

Edited by graymidday

Share this post


Link to post
Share on other sites

Here we go with this again! If you fill out a credit app they can AND will pull your credit and shop it it around no matter what you tell them you would like done.

 

And like Marv said your SOL! Hey did nothing illegal at all.

Share this post


Link to post
Share on other sites

I was recently approved and while speaking with Capital One representative she wanted me to know that they had not pulled my credit. She said when we bought the car the dealership would require that we complete a finance document and it would result in a hard pull.

Share this post


Link to post
Share on other sites

I was recently approved and while speaking with Capital One representative she wanted me to know that they had not pulled my credit. She said when we bought the car the dealership would require that we complete a finance document and it would result in a hard pull.

 

yes, this correct. When auto dealership runs the cap one approval through their system you should get one inquiry from cap one. However, it could very well be one on each report. Cap one likes to pull all 3 bureaus. No real problem with this. Although I had EQ froze so got only TU and EX pulled by Cap One. What you don't want to happen is the dealership to go ahead on their own and pull multiple times for other financing for you if you already have cap one financing in place. If you do want the dealer to look for a better rate, than by all means let them pull. The point on the whole thread is that the OP and I were both told and promised no other pulls by the dealer except the cap one. OP got several from the dealership, I only got one additional. Just make it clear when you go in, what you do and do not want as far as pulling credit goes. I am very happy with my car, the deal was smooth and extremely easy. But, was mislead, as the OP, from the dealer on inquires. Just bad business on their end IMO. I own a business. I don't promise customers something and turn around and do so something different. I wouldn't have many customers if I practiced that...

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  




  • Today's Birthdays

    1. iliana
      iliana
      Age: 48
  • Member Statistics

    • Total Members
      177,972
    • Most Online
      1,956

    Newest Member
    time2getserious
    Joined

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
×
×
  • Create New...

Important Information

Guidelines