Is this normal?

[ojefferyo]

Ok, heres a situation that my sister told me about her friend. He was looking into buying a car. Used 2016 Acura ILX. He had $10k as down payment and financing through his credit union. He found the car he wanted to buy at an Acura dealership and went down to purchase it. They told him even though he has his own financing they still have to run his credit because of the Patriot Act to make sure he is who he says he is. I told my sister that something doesn't sound right because his credit union already verified who he was when he joined. Well long story short after going back and forth with them and the manager they agreed to not run his credit but said he can't take the car till the cashiers check from his credit union clears. He needed the car so he let them run his credit and was able to take the car. What total BS. I would have walked away right then and there. I told her to tell him to keep a close eye on his report. 

[EddieK]

Is it normal?  Probably.  Is it ethical?  Nope.  Although not letting him leave with the car until the check clears is normal and should be expected.  When I bought my car last year I brought a credit union check and they didn't ask to run my credit nor did they even ask for my social.

[ojefferyo]

I have never been asked to run my credit when I purchased any vehicle that was not financed through the dealership that I ws buying it from nor did they hold the car until the check cleared. I was always able to pay with the casheirs check and take the car that day. 

[surferchris]

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@ojefferyo wrote:

I have never been asked to run my credit when I purchased any vehicle that was not financed through the dealership that I ws buying it from nor did they hold the car until the check cleared. I was always able to pay with the casheirs check and take the car that day. 

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Agreed.

[Appleman]

As part of the Patriot Act they need to verify identity. If they do not do they can be penalized. Running a credit check is the easiest way for a car dealer to complete this task. However, it does not have to be a credit pull. 'Waiting for the check to clear' threat is just a strong arm tactic to get this done and poor customer service. 

Years ago when I purchased a Saturn Aura I already had my financing blank check in hand and told them NOT to run my credit. Even wrote it on the sheet.

The next month when I got my monthly updated credit report it was on my report that they did indeed pull my credit. Karma caught up with the dealer as a few days later I received the Customer Survey from the dealer. 

I didn't trash the salesman, it was not his fault. The finance department and overall satisfaction were the lowest score possible. It only took a week before I received phone calls from the dealer and regional manager. Treat the customer right people! (They tried to pull the Patriot Act game as well)

Also, for the OP, encourage the person who had their credit pull to respond as objectively as possible on social media. Yelp, FB, dealer website. Praise those that treated you well but don't hold back. 

[ojefferyo]

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@Appleman wrote:

As part of the Patriot Act they need to verify identity. If they do not do they can be penalized. Running a credit check is the easiest way for a car dealer to complete this task. However, it does not have to be a credit pull. 'Waiting for the check to clear' threat is just a strong arm tactic to get this done and poor customer service. 

Years ago when I purchased a Saturn Aura I already had my financing blank check in hand and told them NOT to run my credit. Even wrote it on the sheet.

The next month when I got my monthly updated credit report it was on my report that they did indeed pull my credit. Karma caught up with the dealer as a few days later I received the Customer Survey from the dealer. 

I didn't trash the salesman, it was not his fault. The finance department and overall satisfaction were the lowest score possible. It only took a week before I received phone calls from the dealer and regional manager. Treat the customer right people! (They tried to pull the Patriot Act game as well)

Also, for the OP, encourage the person who had their credit pull to respond as objectively as possible on social media. Yelp, FB, dealer website. Praise those that treated you well but don't hold back. 

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I understand that verifing the person buying a car is a needed step but a credit report does not have to be pulled. Its not like the credit report has a picture of the said person. You can easily verify via and drivers license and/or passort. I would have walked away when they said they weren't going to release the car until the check has cleared.

[jeffm4688]

I've bought 4 or 5 cars with cashiers checks and never had a problem. Never had to wait either.

The worst I had was a dealer who was claiming they needed to verify my identity which either included running my credit or doing a background check. This was last month. I ended up letting them run a background check as it was not a credit pull & I watched the salesman do it on his computer without issue. 

[UncleB]

I've bought several new (and a couple of used) vehicles post-Patriot Act and when I provided my own financing they didn't even mention pulling my credit. 

Unless things have changed again more recently (which is always possible) I think the whole "Patriot Act" excuse is likely just that... somebody told somebody who told somebody that it was 'required', and suddenly it was, and always had been - after all, how many people actually question it? 

The times I used a cashier's check and the couple of times I used a Capital One 'Blank Check' they did make me wait until the next day for 'delivery', which I understood.  I would have had issues with them pulling my credit 'just because', though.  Note that they did ask for (and I did provide) a copy of my driver's license, so it's not as if they were unsure of who I was.

Side note:  the only time I've ever heard of a local (to me) dealership having to "verify" ID beyond a driver's license is if somebody wanted to pay in cash, i.e. currency.  In that case, since the amount was over $10k (in the cases I was told about) they are required to do the standard IRS paperwork but when certified funds or a bankwire is used it shouldn't be necessary.

[RonM21]

I didn't think this was supposed to be an issue either. It sounds more like an issue with them and the way they do business, which apparently leaves a lot to be desired!