@haulingthescoreup wrote:
The Patriot Act requires them to establish your identity. Credit reports don't do this, although dealers seem to think that it does. You can show a passport, if you have a current one. Incorrect, credit reports do this, they are the quickest and easiest way to establish OFAC
I'd say that since they've written on your deal sheet DO NOT RUN CREDIT REPORT, if they do so, it will be unauthorized. Which by the way, is $1K a pop.
1- A dealership may Need your SSN for titling and registration.
2- A dealership will need it for cash transactions greater then $9,999.99.
Under the USA Patriot Act, Auto Dealerships were specifically defined as Financial institutions, and were then forced to maintain a rigorous customer identification program.
A credit application is the easiest way for a dealership to utilize a Customer Identification Program- as mandated by law.
http://www.privacyrights.org/fs/fs31-CIP.htm
A HUGE MISCONCEPTION IS:
The establishment of "customer identity" procedures is to establish that the customer is who he says he is. You are correct that a credit report rarely has information that makes that easier. That is not the point of the laws.
The reality is that the customer identification protocols are to make sure that the person is not on a "Banned" or watch list. That the institution is actually doing business with someone that they are legally allowed to.
Customer Identification Programs were introduced via the USA Patriot Act. The NIADA tried to get an exemption for car dealerships but it did not go through.
http://www.fincen.gov/statutes_regs/frn/comment_letters/old_comment_files/stockampamlvs.pdf
The NADA also chimed in
http://www.fincen.gov/statutes_regs/frn/comment_letters/old_comment_files/metreyamlvs.pdf
A nice summary of requirements is here:
http://www.m-s-lawyers.com/CM/Publications/PatriotActImpacts.asp
A NIADA summary of how/why and what dealerships must do to remain compliant with federal law is here:
http://www.niada.com/PDFs/Publications/USAPatriotAct.pdf
Information about Customer Identification Programs (CIPs) is available here:
http://www.privacyrights.org/fs/fs31-CIP.htm#2
Please understand that it is MANDATED that EVERY CUSTOMER the dealership sells a car to be checked against OFAC, and that a dealership maintains records of not just the person and the transaction bit also that the records were checked. Not checking on one Customer is a minimum $50,000 fine.
Important to note:
If you are bringing your "own" financing it is probable that the dealership does not truly need to establish identity since the institution you are using has already done this. By the same thought, since the fine is $50,000 for not obeying federal law I am quite sure the Dealership is doing it to ensure complete compliance with the law and also to simply to cover their a$$ets. Either way it is the cost of doing business for both you as a consumer and the dealership in this day and age. Talk to your congressman or senator if unhappy.
A credit report costs money, if you were leaving with the car anyway why would the dealership spend unnecessary money on the deal?
++++IN ALL REALITY YOU WILL PROBABLY HAVE ONE INQUIRY ON YOUR REPORT.
