topic Re: Dealership Inquiry for Anti-Terrorism Counting Against Me??? in General Credit Topics

Dealership Inquiry for Anti-Terrorism Counting Against Me???

Lawlover2 — Thu, 07 Aug 2008 17:27:29 GMT

I purchased a car in February 2008. I was preapproved from my local CU when I went into the dealership and told them under no circumstances, did I want their assistance w/ financing. They stated they had to run a credit check as part of some anti-terrorism blah blah, which I do believe is true. However, this request shows up on my credit report as an inquiry that counts against me . . . I am livid as I have bought 2 cars and refinanced in the past year so it shows my TU score as being down because of too many inquiries. What do I do about this ????? Shouldn't they have coded it so that it didn't count against me? i don't want to drop my score by notifying TU. I just think it so crummy that people can do that to you!!!! Think of the thousands of people that by from them (big dealership in St. Louis) that don't know they are getting scammed! Please offer any advice you have.

Re: Dealership Inquiry for Anti-Terrorism Counting Against Me???

Anonymous — Sun, 10 Aug 2008 05:34:58 GMT

bump

Re: Dealership Inquiry for Anti-Terrorism Counting Against Me???

Anonymous — Sun, 10 Aug 2008 13:52:14 GMT

you must have given them your ss. I would dispute the TU. Dealer did that to me once. kept pulling crs 'til i called and said stop it. They are like leeches.

Re: Dealership Inquiry for Anti-Terrorism Counting Against Me???

Anonymous — Sun, 10 Aug 2008 16:30:37 GMT

This is actually true. I sold cars a few years ago, and we were told that credit reports must be done for this reason. It was explained that there are some people who actually are not allowed to purchase vehicles, and such would be indicated on their credit reports?!?

Also, keep in mind that you could have been a thief, and when a dealership trusts you to leave with such an expensive item, they are going to want to see some proof you can afford, and likely will pay. Of course, you can have an approval through your bank, but, you could be lying about that, or could have forged a pre-approval letter. Pulling your credit is a way to ease the minds of management at a dealership that they're not gonna get jipped!

Re: Dealership Inquiry for Anti-Terrorism Counting Against Me???

Anonymous — Sun, 10 Aug 2008 17:13:54 GMT

The anti-terrorism law you are referring to is the Patriot Act, I believe.

However, I am not familiar with the specifics.

Re: Dealership Inquiry for Anti-Terrorism Counting Against Me???

MidnightVoice — Sun, 10 Aug 2008 18:09:10 GMT

The patriot Act requires that Financial Institutions (and a car dealership is such within the meaning of the Act) verify identity. They tend to be lazy and pull a CR to do that. It can be argued that they do not have PP to pull, as there are other, better ways of proving identity (a passport comes to mind).

I don't think has been settled in a court of law as yet.

Re: Dealership Inquiry for Anti-Terrorism Counting Against Me???

Anonymous — Sun, 10 Aug 2008 18:37:56 GMT

Unless you agree to it, which it sounds if the OP gave them permission to do this without checking to see how the inquiry would be coded.

I would call the dealership and ask them to recode the inquiry or remove it, as it has served the purpose.

You could always call the CRA and ask them how a inquiry to verify identity should be coded.

MidnightVoice wrote:

The patriot Act requires that Financial Institutions (and a car dealership is such within the meaning of the Act) verify identity. They tend to be lazy and pull a CR to do that. It can be argued that they do not have PP to pull, as there are other, better ways of proving identity (a passport comes to mind).

I don't think has been settled in a court of law as yet.

Re: Dealership Inquiry for Anti-Terrorism Counting Against Me???

Anonymous — Sun, 10 Aug 2008 19:15:11 GMT

I purchased a car two weeks ago.

Walked in with a bank check - left with a car.

No credit check.

Re: Dealership Inquiry for Anti-Terrorism Counting Against Me???

Anonymous — Sun, 10 Aug 2008 19:17:51 GMT

ssstevie wrote:
This is actually true. I sold cars a few years ago, and we were told that credit reports must be done for this reason. It was explained that there are some people who actually are not allowed to purchase vehicles, and such would be indicated on their credit reports?!?

This sound like a bunch of FUD/misinformation.

If I purchase a car from an individual they sure as heck ain't gonna be checkin' my credit!

Re: Dealership Inquiry for Anti-Terrorism Counting Against Me???

rsant101 — Sun, 10 Aug 2008 19:23:14 GMT

Next time...do not take the car. Get a buyers order and take it to your bank and have them give you a check. You need a buyers order because that will tell your bank what is the cost of the car, taxes, and ancillary administrative expenses.

Go to the dealership with check and your ID in hand. This eliminates the need for a credit check. Your lending institution has veried who you are (that is why they lent you the money).

The dealership put you through that tailspin because they wanted to see if they can compete with your financing institution. The only way they can do that is if they pull your credit.

Dealeships hate when you get your own financing because that lowers their profit margin. They profit through the backend as well!

Re: Dealership Inquiry for Anti-Terrorism Counting Against Me???

MidnightVoice — Sun, 10 Aug 2008 19:47:17 GMT

techno-pagan wrote:

ssstevie wrote:
This is actually true. I sold cars a few years ago, and we were told that credit reports must be done for this reason. It was explained that there are some people who actually are not allowed to purchase vehicles, and such would be indicated on their credit reports?!?

This sound like a bunch of FUD/misinformation.

If I purchase a car from an individual they sure as heck ain't gonna be checkin' my credit!

An individual is not a Financial Institution within the meaning of the Act!

Re: Dealership Inquiry for Anti-Terrorism Counting Against Me???

Anonymous — Sun, 10 Aug 2008 19:57:08 GMT

MidnightVoice wrote:
The patriot Act requires that Financial Institutions (and a car dealership is such within the meaning of the Act) verify identity. They tend to be lazy and pull a CR to do that. It can be argued that they do not have PP to pull, as there are other, better ways of proving identity (a passport comes to mind).

I don't think has been settled in a court of law as yet.

Can you provide the source?

I would agree if the dealership were providing the financing - but since they were not I do not see how they would be considered a "financial institution".

Although I guess when you consider many car dealers are(were) used to launder drug money then maybe...

(Hmm, seems I can have an arguement with myself, lol).

Message Edited by techno-pagan on 08-10-2008 12:57 PM

Re: Dealership Inquiry for Anti-Terrorism Counting Against Me???

MidnightVoice — Sun, 10 Aug 2008 20:12:39 GMT

techno-pagan wrote:

MidnightVoice wrote:
The patriot Act requires that Financial Institutions (and a car dealership is such within the meaning of the Act) verify identity. They tend to be lazy and pull a CR to do that. It can be argued that they do not have PP to pull, as there are other, better ways of proving identity (a passport comes to mind).

I don't think has been settled in a court of law as yet.

Can you provide the source?

The patriot Act!

Bacause they are selling you a car, they need to check your ID - just as if you open a new account in a bank they need to do it - my local CU even has signs up explaining it!

IMHO, that alone DOES NOT give them the right to pull a credit report, but I don't think it has been challenged in court!

Re: Dealership Inquiry for Anti-Terrorism Counting Against Me???

Anonymous — Sun, 10 Aug 2008 20:27:03 GMT

MidnightVoice wrote:

techno-pagan wrote:

MidnightVoice wrote:
The patriot Act requires that Financial Institutions (and a car dealership is such within the meaning of the Act) verify identity. They tend to be lazy and pull a CR to do that. It can be argued that they do not have PP to pull, as there are other, better ways of proving identity (a passport comes to mind).

I don't think has been settled in a court of law as yet.

Can you provide the source?

The patriot Act!

Bacause they are selling you a car, they need to check your ID - just as if you open a new account in a bank they need to do it - my local CU even has signs up explaining it!

IMHO, that alone DOES NOT give them the right to pull a credit report, but I don't think it has been challenged in court!

Yeah, I got that - how about section/paragraph that says a car dealer is a financial institution?

Again, all I needed to buy my car was a check and a drivers license.

Re: Dealership Inquiry for Anti-Terrorism Counting Against Me???

Anonymous — Sun, 10 Aug 2008 20:32:46 GMT

MidnightVoice wrote:

techno-pagan wrote:

MidnightVoice wrote:
The patriot Act requires that Financial Institutions (and a car dealership is such within the meaning of the Act) verify identity. They tend to be lazy and pull a CR to do that. It can be argued that they do not have PP to pull, as there are other, better ways of proving identity (a passport comes to mind).

I don't think has been settled in a court of law as yet.

Can you provide the source?

The patriot Act!

Bacause they are selling you a car, they need to check your ID - just as if you open a new account in a bank they need to do it - my local CU even has signs up explaining it!

IMHO, that alone DOES NOT give them the right to pull a credit report, but I don't think it has been challenged in court!

I assume you are refering to Title III - but it has nothing to do with checking identity - it is all about money laundering.

I think there is alot of misinformation going on about this - people should actually read it and be informed - don't let someone tell you what is required - KNOW YOUR RIGHTS.

Re: Dealership Inquiry for Anti-Terrorism Counting Against Me???

MidnightVoice — Sun, 10 Aug 2008 20:35:23 GMT

techno-pagan wrote:

KNOW YOUR RIGHTS.

Which are?

Re: Dealership Inquiry for Anti-Terrorism Counting Against Me???

Anonymous — Sun, 10 Aug 2008 22:58:38 GMT

Just my opinion.

Yes it is true now with this law that banks and some lenders must verify identity. I never heard that this needs to be done by placing a hard inq on a credit report. How many of you pull your own credit? I do, pretty simple right! That could be why they choose to pull credit. Fast, simple, easy. Lazy.

The problem with soft pulls is that pulling for promo reasons might be something they don't know how to do. And not sure they get all the needed info on a promo pull. While a soft A/R pull does give them the same info as a hard pull, unless you have other accounts with that lender I don't believe they can pull an A/R. Being left with a limited promo and no access to A/R they more than likely choose to do a hard pull just to see your credit. I'd not lend any money to someone with out pulling credit. Is there a way to keep it soft, sure. Are they going to go through that trouble, probably not.

Now did they tell you the truth? Probably not. Would you have let them pull your credit if they gave you a different reason? Probably not.

I had a lender freeze my bank funds because they said it was part of the law because I used too much credit. The CSRs that told me this didn't even know what the law was but were told to say this. Finally when I spoke to someone higher up they said, no, sorry it doesn't apply to this, released my funds. Most of the time employees are told to say this and are incorrectly educated. However the people at the top know this and want these employees to believe this so they do what they are told.

Again this is all my opinion and no way to back this up.

Message Edited by ilovepizza on 08-10-2008 06:58 PM

Re: Dealership Inquiry for Anti-Terrorism Counting Against Me???

athensguy — Wed, 13 Aug 2008 02:14:48 GMT

If I have financing ready next time I go to purchase a car, I fully intend to have all three of my CRs frozen.

Re: Dealership Inquiry for Anti-Terrorism Counting Against Me???

Anonymous — Thu, 14 Aug 2008 11:32:47 GMT

I remember a few years ago walking into a Car Dealer. The receptionist who greeted me invited me to have a hot dog and soda. While I am there enter the drawing for a new car. I entered the drawing. The form asked for name, address, phone number, and Social Security Number. I thought that was strange. But I worked with promotions before and I know for a big prize you need Social Security Numbers to report to IRS. When I completed the form, a sales person took it out of my hand.. Ran a credit check and wouldn't talk to me until he know how much I was pre-approved for... I was young and stupid.. I didn't know any better. If you are in a situation like that WALK OUT THE DOOR. Maybe on the back of the form there was something on there where I gave them permission to do a credit check.. I am still mad about it to this day. I have no idea if it was a soft or hard pull.. I didn't know much about credit and fico scores at that time.

Message Edited by Pants on 08-14-2008 07:32 AM

Re: Dealership Inquiry for Anti-Terrorism Counting Against Me???

Anonymous — Thu, 14 Aug 2008 12:20:19 GMT

athensguy wrote:
If I have financing ready next time I go to purchase a car, I fully intend to have all three of my CRs frozen.

Now that's what I'm talking bout!!!!!