I had a loss on my truck from an accident. I went to a couple of different dealerships to look at some vehicles. They flooded my credit report with like 41 inquiries between 2 dealerships. Id there any way to remove the inquires. At least the ones that didnt throw me a offer?
FICO looks at Auto and Home shopping and group together as one as long as they are coded as auto/mortgage pulls. Next time find a lender, get a preapproval and walk in with a check and drive off.
Are you contesting whether or not the dealership had permissible purpose to make an inquiry, or is your issue whether they could make multipple inquiries based on one permissible purpose?
For a discussion of when an auto dealer obtains permissible purpose, the FTC has specifically addressed the issue in a February 11, 1998 advisory opinion as follows:
"1. Section 604(a)(3)(F) permits CRAs to provide consumer reports to any party who has a "legitimate business need for the information in connection with a business transaction that is initiated by the consumer." You ask whether this provision allows a dealer to obtain a consumer report on a person who "comes to an automobile dealership and requests information" from a salesman about one or more automobiles. In our view it does not, because a request for general information about products and prices offered does not involve a business transaction initiated by the consumer.
"More generally, you ask "when is the beginning of a business transaction" initiated by the consumer? In responding to this question, it is important to note that Section 604(a)(3)(F) limits this "business need" permissible purpose to transactions (i) that are "initiated" by the consumer and (ii) where the seller has a "legitimate business need" for the information. The staff's view is that an automobile dealer may obtain a report only in those circumstances in which the consumer clearly understands that he or she is initiating the purchase or lease of a vehicle and the seller has a legitimate business need for the consumer report information in order to complete the transaction.
"For example, a consumer who asks a dealer questions about prices and financing is not necessarily indicating an intent to purchase or lease a vehicle from that particular dealer. Nor does the dealer have a "legitimate" business need for a consumer report in this situation. The consumer may simply be comparison shopping. In such a situation, the dealer must obtain written permission from the consumer before obtaining a consumer report. If the dealer would like to see a consumer's credit report before answering general questions about the availability of financing, this must be explained to the consumer and written permission must be obtained. In the same way, a request to "test drive" a vehicle does not indicate an intent to initiate the purchase or lease of the vehicle. Accordingly, if a consumer asks to test drive a vehicle, the dealer must obtain written permission from the consumer before obtaining a report.
"Only in those circumstances where it is clear both to the consumer and to the dealer that the consumer is actually initiating the purchase or lease of a specific vehicle and, in addition, the dealer has a legitimate business need for consumer report information may the dealer obtain a report without written permission. In this regard, we note that obtaining information for negotiation purposes does not constitute a "legitimate" business need. The dealer must have a specific need for the information directly related to the completion of the transaction. For example, a dealer may obtain a report, if one is necessary, in order to arrange financing requested by the consumer.(1) The dealer may also obtain a report to check a consumer's creditworthiness when the consumer presents a personal check to pay for the vehicle. By contrast, a permissible purpose would not arise if a consumer intends to pay by cash.
FCRA 819 specifies that a party who knowingly and willfully obtains information from a consumer reporting agency under false pretenses shall be fined under Title 18, United States Code, imprisoned for not more than 2 years, or both."
So i walk in to the lot of the first dealership. I see a couple of vehicles I am intrested in. I have about 5 salesman coming for me..lol. I was talking about a price on one particular vehicle. He said come inside and we can fill out a general information form and talk about the vehicle you are interested in. I go in and he give me a basic form to fill out. I fill it out and give it to the salesman. He said he was going to see if he could prequalify me and it would only result in a SP.
I made sure to ask him that it would not be a HP and he Verified that it would only be a SP. so about a minute and a half goes by and my phone starts going off with all these credit inquiry alerts. I was really upset and told the gentlemen he was only suppost to do a SP to see if I was prequalifed. Then he told me he never said such a thing. straight lied to my face. Either way I did get qualified through Santander Consumer.
I asked to speak with the salesmans boss about the situation. The salesman went and got him and the manager came out and asked what the problem was. I explain to him what had happened and that I was not happy about it and that I was lied to. All the sales Manager said was have a nice day and walked off.
I left that dealership knowing that I was already approved through Santander Consumer. I went to another lot that had a nicer vehicle than before. I looked an the vehicle and of course I was swarmed by salesman. I told them I already had financing approved through Santander Consumer. They just needed to call them with my social and everthing would be fine.
I be danged it they did run my credit again like the other dealership after I already told them I had financing. I argued with them for a few minutes then I left. it was a horrible experience. Worst car shopping experience I have ever had in my life.
If you consenting to having him pull your credit report, then you granted authorization, and there is thus no need for any futher consideration of whether they have permissible purpose.
The issue of whether it will be coded as hard or soft is a separate matter, unrelated to their obtaining your credit report.
Salesmen are not credit experts, and I would not rely upon their statement of how an inquiry will be coded as binding.
You could sue for breach of oral contract, but that is a bit extreme for a relatively minor issue regarding whether or not others can see it in your credit report, as FICO will treat them for scoring purposes as a single inquiry if made within the "de-duping" window if they show in your credit report.