unauthorize dealer pulling credit check

[Anonymous]

hi hello i'm new to this forum and looking for some advices on credit pulls.

alright early this year 2016 i have finance a car that i have found at a used car dealership, but also have a auto loan rate that i received from my bank prior to going. after test driving the vehicle i decided to gave the dealer permissible purpose to pull a credit check to see if they can pull a better auto loan rate and they did received a better rate then the rate i have from my bank. so i decided to finance the vehicle from this dealer. 

a week later i received the credit score that was pulled from the dealer and bank we are associated with, with a credit score of 714(permissible purpose)

two weeks later i received another credit pull from a unknown dealer that we have no association with, credit score dropped to 691(non-permissible purpose)

filed a consumer dispute report on the second credit pull, and a two weeks later receieved a call from the dealer(A) we bought the car from saying that the second pull was because of a permissible purpose we gave the dealer(A), so by saying dealer(A) released my personal information without my consent to another of their partnering dealer(B) to also pull my credit line.

my question is that if you as a consumer who didnt give permissible purpose for dealer(B) to pull your credit score, is that illegal?

my second question is that its it legal for a dealer that your associated with release consumer information to another dealer?

what can i do

[silkysean]

No need t file dispute the problem is once you allow a dealer to run your credit they will shop it around to many companies to see who can give a better rate.Lucky for you it sounds like it was only pulled twice,Many times dealers will get 4-6 pulls.Once you sign letting dealer run your credit it will be trouble cause they can shop it out to anyone.Hopes this helps 

[Anonymous]

Dealers find a better rate by contacting other institutions . The other institutions then sees what rate they can give by pulling your reports. It is extremely common and you probably signed a form giving them the right to do this. You should always read what you sign.

[Anonymous]

sorry but im so new at the credit pulls and it was my first time finance a vehicle. i understand that when you sign that application for the dealer to pull your credit, you are giving them permission, is it ok for the dealer your associated with release your personal information to other dealership that you have no business with. would that be a non-permissible purpose, since i didnt have no business with the other dealerships

[Anonymous]

i did gave the dealer permissible purpose to check my score but i understand that if the same dealer pulled twice from different banks i wouldnt be so confused but the thing is that im so confused about is the another dealer we had no association with or business with pulled my score and their are both different dealership businesses

[UncleB]

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@Anonymous wrote:

i did gave the dealer permissible purpose to check my score but i understand that if the same dealer pulled twice from different banks i wouldnt be so confused but the thing is that im so confused about is the another dealer we had no association with or business with pulled my score and their are both different dealership businesses

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While it's common for a dealer to send a credit app to multiple banks it's not common (at least it never happened to me) for a dealer to send an application to another dealership, especially after the fact (if I understand correctly, the other dealership pulled your credit after you had already bought the car?)  The one exception here is if you had a spot-delivery (see below), but even then any additional HPs should be from your original dealership.

Basically, there is little reason for anybody to do a HP on you two weeks after your purchase, unless there were issues with your financing and it had to be changed to another lender after-the-fact.  This could have happened if you had what's referred to as a 'spot delivery', where they let you take the car before the financing is completed, with the expectation that there won't be any issues.  Sometimes there are issues, and you have to take alternate financing arranged after the vehicle has left the lot (the alternate financing is usually not as good for the customer).  This is all in the fine print, although few people read to that point while they are signing the papers.

If it were me, I would question my dealership why another credit pull was necessary from anybody two weeks after my sale, and especially from another dealership altogether - especially if your financing didn't have issues (i.e. have to be changed to another lender).  If you don't get an answer that makes sense, keep pushing... if I'm understanding your post correctly this doesn't sound right.

[RobertEG]

In addition to Uncle B's comments, I would add that your situation is a bit different in that the dealer did not actually pull based on a permssible purpose, they pulled based on your specific authorization.

The FCRA is structured so that a party does not need any specific authorization from a consumer if they request your credit report for any of the reasons set forth under FCRA 604.  Alternately, if a party obtains the specific consent of the consumer, permissible purpose is not an issue.

The scenario specifies that the consumer gave expresss consent to the inquiry.  Thus, there is no issue of whether the consumer was initiating a specific business transaction that involved need of the business ot review the consumer's credit as part of the transaction.

In order for another to pull, there must have additionally been a consumer-initiated business transaction that involved the need to review the consumer's credit.

Did you apply for credit, or just grant a single authorization to explore?

Regardless, the later pulls would clearly lack any permissible purpose in that there was no longer any pending request for credit.

I would contest the later pulls as lacking any permissible purpose or express authorization, in that there was clearly no pending business transaction at the later time.

[Anonymous]

on both statements of credit pulls it was pulled on the same day but the statement of credit pulls came two weeks apart but the confusion is that one dealer i gave permission to pull and the other dealer i never heard of.. i did called the dealer about this issue, the person i reached said the other business is his families dealership and that was how they had a hold of my information.

[Anonymous]

Multiple pulls for auto financing on the same day shouldn't impact your score more than a single inquiry would. They should all count as one. Same with mortgages. It's expected that you are going to be shopping around looking for the best rate, so all those inquiries count as ONE attempt to borrow money.

[Anonymous]

thank you everyone for your advices. it was a big help since im just started building my credit and this was my first experience with multiple credit pulls. thanks again god bless