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

[Lawlover2]

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.

[Anonymous]

bump

[Anonymous]

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.

[Anonymous]

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!

[Anonymous]

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

However, I am not familiar with the specifics.

[MidnightVoice]

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.

[Anonymous]

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.

---

[Anonymous]

I purchased a car two weeks ago.

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

No credit check.

[Anonymous]

---

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!

[rsant101]

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!