I'll have to read up on that, thanks for pinning the law to look at! Now I guess the question is would a soft pull satisfy that... which I would say I would accept if it were me. Shame they didn't tell her that before they ran it! Off to read....
Section 314 of the Patriot Act requires that financial institutions take steps to deter money laundering. Even though it is a cash transaction, a hard pull would satisfy the requirements as far as the lender is concerned in that they took the necessary steps to comply with the requirements of section 314. That is my interpretation anyway. A civil liberties attorney may disagree.
I understand that a financial institution would have to do a verification--but this was a cash transaction from the start--a point that was made clear to the salesperson. Would this still apply?
I agree! As for terrorists, I can't imagine one them even having a credit score!
That is a crock of bull. NO ONE has a right to pull your credit unless you are applying for new credit. Contact the ftc at www.ftc.gov for clarification. They have to have DL and proof of insurance but not a credit profile!!! What? Do terrorists have bad credit or something?
there was no loan being originated, yes the dealer would need to report the transaction. however cra's don't dump (at least i don't think so) into gov databases for review are they? if not, then why "verify" identity by pulling a hard? not an attorney, nor do i play one on tv (to tie into another thread about generatioal references), but seems i can verify my identiy just fine w/o running around with a credit report in my pocket.
uptomyneck wrote:Gramm-Leach-Bliley Financial Services Modernization Act, Pub. L. No. 106-102, 113 Stat. 1338As it pertains to car sales defines dealerships as financial institutions because they are originating loans.Title III of the USAPATRIOT ACT aka the International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001 requires all financial institutions to verify the identity of an individual opening and account with their institutions.They are also required to verify your identity and cross check it with the Office of Foreing Assests Controls' list of Specially designated Nationals (who are prohibited from conducting large transactions in the United States)I can't site the statute, I think it was the RICO act, but certain large cash transactions (including car sales) have to be reported to the Internal Revenue Service.All of this is accomplished by running your credit. Car dealerships don't have a choice. You might find a disreputable business that won't run your credit, but if they don't they are liable and can be personally prosecuted under federal law.