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Paid Cash for Car- They pulled credit

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OmarR
Established Contributor

Re: Paid Cash for Car- They pulled credit


@fury1995 wrote:

@OmarR wrote:

@Brian_Earl_Spilner wrote:

@OmarR wrote:

@fury1995 you seem to be in the business, so I am curious;

 

If OP had signed a bunch of paperwork with credit check permission on Page 99, and her reports were frozen, I am assuming that the HP would NOT have gone thru?


It wouldn't have gone through, but the purchase would stop while they ask you to thaw your reports. This brings up a double edged sword. Thawing is, for the most part, instant. But, I've had TU take a week to thaw before. Totally screwed up my chances to make a purchase at the sale price. 


 

That's what I figured. 

 

That's the part where I have ZERO problems waiting for my check to clear, or simply walking away and going somewhere else.


@OmarR   Yep, that's also what identidy theives do when we put them through this process.

 

They threaten to take their "business" somewhere more willing... and fortunately they often find one.

 

And yes, I'm in the auto dealer busniess. I get fraud attempts more than once a month.


 

I can totally understand the fraud aspect from your point of view. But if i am a cash customer refusing a HP, do you or other dealers offer alternative methods? Like a wire transfer, cashiers check, etc?

 

Currently, I'm someone who drives beaters that I pay cash for. My mortgage is my only debt. After that is done (hopefully) soon, I just don't see myself ever going into debt again. I never buy new, so even dealer incentives do nothing for me. 

 

Just curious. 

 EQ=850   EX=845   TU=843       0/24       UTIL=$1    AZEO

Message 11 of 20
OmarR
Established Contributor

Re: Paid Cash for Car- They pulled credit

@fury1995

 

Also, if a fraudster has all the convincing info, I.D., etc, does a HP really hang him/her up? Like you now have the phone number associated with the credit report, and you call it, and the real identity is at home watching Yellowstone?

 

Honestly asking.  

 EQ=850   EX=845   TU=843       0/24       UTIL=$1    AZEO

Message 12 of 20
fury1995
Valued Contributor

Re: Paid Cash for Car- They pulled credit


@OmarR wrote:

@fury1995

 

Also, if a fraudster has all the convincing info, I.D., etc, does a HP really hang him/her up? Like you now have the phone number associated with the credit report, and you call it, and the real identity is at home watching Yellowstone?

 

Honestly asking.  


@OmarR  Yeah, pretty much. The assumption is the application legitimate. When I move on to the actual transaction, that's when everything is scrutinized. The phone number on the application is the crook. People don't generally have their phone numbers on their actual bureau unless their is an existing fraud alert in which case it wouldn't matter. 

August 28, 2023 FICO 8

August 28, 2023 FICO BankCard 8

August 28, 2023 FICO Auto 8

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Message 13 of 20
MountainHiker
Established Contributor

Re: Paid Cash for Car- They pulled credit


@CaroleBaskinBB wrote:

My husband and I purchased a car in cash this evening and we paid via personal check. I checked ahead of time that they accepted this and didn't require a cashiers check. 

I was surprised that after we got there they said they needed to check credit to make sure we are who we say we are because we were paying with a personal check. I asked if this was a hard inquiry and they insisted it would not be. 

Lo and behold I get a monitoring alert a couple hours later saying that they pulled credit.  It appears to be a hard inquiry.  If it is, I am absolutely livid.  Does anyone know if this is standard practice when purchasing with a personal check?


Very sorry to hear your confidence was misused.  I would demand they remove that hard inquiry from your credit report.  And if they don't then call up the credit bureaus yourself and dispute them. Equifax will probably be the most difficult to dispute on your own based on personal experience, but I have found Transunion and Experian to be far more customer service friendly. Imo promising one thing while doing another is fraud. Bait and switch is very prevalent in the corporate world. Good luck moving forward. 

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Goal 750 Across

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Message 14 of 20
cashorcharge
Community Leader
Senior Contributor

Re: Paid Cash for Car- They pulled credit

Even though you paid with a check, there isn't really anything from prohibiting you from stopping payment on the check that same day so the dealership ran your credit likely as a way to say...if this check bounces, we are going to send this contract to X bank and with your credit report in hand, they are guaranteeing they can get your loan approved.  It's unfortunate that the explanation you were given was incorrect.  

 

As far as getting it removed, I wish you luck but don't have the highest hopes unfortunately

Message 15 of 20
fury1995
Valued Contributor

Re: Paid Cash for Car- They pulled credit


@MountainHiker wrote:

@CaroleBaskinBB wrote:

My husband and I purchased a car in cash this evening and we paid via personal check. I checked ahead of time that they accepted this and didn't require a cashiers check. 

I was surprised that after we got there they said they needed to check credit to make sure we are who we say we are because we were paying with a personal check. I asked if this was a hard inquiry and they insisted it would not be. 

Lo and behold I get a monitoring alert a couple hours later saying that they pulled credit.  It appears to be a hard inquiry.  If it is, I am absolutely livid.  Does anyone know if this is standard practice when purchasing with a personal check?


Very sorry to hear your confidence was misused.  I would demand they remove that hard inquiry from your credit report.  And if they don't then call up the credit bureaus yourself and dispute them. Equifax will probably be the most difficult to dispute on your own based on personal experience, but I have found Transunion and Experian to be far more customer service friendly. Imo promising one thing while doing another is fraud. Bait and switch is very prevalent in the corporate world. Good luck moving forward. 


The dealer likely covered their bases with a signed document allowing the inquiry. That's likely how the conversation of the type of inquiry occurred. What was actually signed is the only thing that matters legally..

August 28, 2023 FICO 8

August 28, 2023 FICO BankCard 8

August 28, 2023 FICO Auto 8

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Message 16 of 20
MountainHiker
Established Contributor

Re: Paid Cash for Car- They pulled credit


@fury1995 wrote:

@MountainHiker wrote:

@CaroleBaskinBB wrote:

My husband and I purchased a car in cash this evening and we paid via personal check. I checked ahead of time that they accepted this and didn't require a cashiers check. 

I was surprised that after we got there they said they needed to check credit to make sure we are who we say we are because we were paying with a personal check. I asked if this was a hard inquiry and they insisted it would not be. 

Lo and behold I get a monitoring alert a couple hours later saying that they pulled credit.  It appears to be a hard inquiry.  If it is, I am absolutely livid.  Does anyone know if this is standard practice when purchasing with a personal check?


Very sorry to hear your confidence was misused.  I would demand they remove that hard inquiry from your credit report.  And if they don't then call up the credit bureaus yourself and dispute them. Equifax will probably be the most difficult to dispute on your own based on personal experience, but I have found Transunion and Experian to be far more customer service friendly. Imo promising one thing while doing another is fraud. Bait and switch is very prevalent in the corporate world. Good luck moving forward. 


The dealer likely covered their bases with a signed document allowing the inquiry. That's likely how the conversation of the type of inquiry occurred. What was actually signed is the only thing that matters legally..


I wouldn't be a bit surprised it that company lied to their faces.  The right thing to do would be giving the client all information upfront.  And especially considering that the OP did in fact expressly asked if there would be a hard inquiry involved in the purchasing process.  And when that company verbally committed to not performing a hard inquiry and then breached that agreement, in my mind it became a legal matter. It's not proper contract law to verbally commit an agreement that counters the written contract. For that reason alone I  would fight it. 

EQ-732FICO,EX-PLUS 740,TU-725FICO
Goal 750 Across

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Message 17 of 20
sccredit
Valued Contributor

Re: Paid Cash for Car- They pulled credit

When we bought a car for our kid we were paying in full. We were told if we wrote a personal check they'd pull credit but if we paid by credit/debit card or physical cash they could run OFAC only.

Message 18 of 20
CreditCuriosity
Moderator Emeritus

Re: Paid Cash for Car- They pulled credit

OFAC is likely the reasons as eluded to by @fury1995 .  I use to work for a company that provided extended service contracts to cars sold through most dealerships and I wrote the program that did OFAC checks of a person as any financial transaction that we did had to do this to comply to the law.  Granted we didn't need to pull a persons credit we used other PII (Personal identifying information) to run through the OFAC DB to see if a hit happened or not and if so reported accordingly.

Message 19 of 20
docbang
New Contributor

Re: Paid Cash for Car- They pulled credit


@cashorcharge wrote:

Even though you paid with a check, there isn't really anything from prohibiting you from stopping payment on the check that same day so the dealership ran your credit likely as a way to say...if this check bounces, we are going to send this contract to X bank and with your credit report in hand, they are guaranteeing they can get your loan approved.  It's unfortunate that the explanation you were given was incorrect.  

 

As far as getting it removed, I wish you luck but don't have the highest hopes unfortunately

 

Correct!  The dealer needs a "CASHABLE DEAL" even if the dealer check all the licenses,, birth certificate, insurance info,  etc and they all checked out.  All the dealer care about is the assurance that they will get their money (funding) by selling the contract to the any financial institution if you decide to flip flop on them. As for the HP, it's done. Personal check is a UNVERIFIED FUND..


 

Message 20 of 20
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