Question about auto inquiries

[Suzette2]

Hey, all:  

so I recently got a car loan and there were 10 inquiries in one day from the transaction.  Apparently the dealer shopped the deal.

 I called the CB's since there's a law that states that auto inquiries are supposed to be counted cumulatively as one.  They told me that they're counted separately since they were pulled separately.  They also said I could call each potential lender and ask the inquiry to be removed since I did not authorize it.  

this doesn't sound right and I'm wondering if others have had this issue? What's the purpose of the law if it's irrelevant? On the other hand, if it's likely to prevail I don't mind calling them- but want my ducks in a row before I do.  

thanks in advance.  I've learned so MUCH here! 

[Fico82]

To my understanding... It will be scored as 1 but all 10 inquiries will show on your report for 2 years .

[SouthJamaica]

---

@Suzette2 wrote:

Hey, all:  

so I recently got a car loan and there were 10 inquiries in one day from the transaction.  Apparently the dealer shopped the deal.

 I called the CB's since there's a law that states that auto inquiries are supposed to be counted cumulatively as one.  They told me that they're counted separately since they were pulled separately.  They also said I could call each potential lender and ask the inquiry to be removed since I did not authorize it.  

this doesn't sound right and I'm wondering if others have had this issue? What's the purpose of the law if it's irrelevant? On the other hand, if it's likely to prevail I don't mind calling them- but want my ducks in a row before I do.  

thanks in advance.  I've learned so MUCH here! 

---

The inquiries stay in the record, but 2 weeks worth are aggregaged for scoring purposes and counted as just 1.

[pizzadude]

This is common with auto dealers, they shotgun your application to as many lenders as possible looking to get you approved.  

Also they misinformed you regarding having the inquiries removed, when you authorized the dealer to pull your credit this constituted permissible purpose. 

[GatorGuy]

Even for scoring purposes, all the inquiries must have been coded correctly as auto loan inquiries otherwise even then they would count individually for scoring purposes.

[expatCanuck]

I'd start making those calls.

And I'd also formally dispute the inquiries with each bureau. You did not authorize them.

Think of it this way -- if the dealer clearly advised you that there would be 10 inquiries, what would you have said?

You did not authorize the inquiries.  

[pizzadude]

---

@expatCanuck wrote:

I'd start making those calls.

And I'd also formally dispute the inquiries with each bureau. You did not authorize them.

Think of it this way -- if the dealer clearly advised you that there would be 10 inquiries, what would you have said?

You did not authorize the inquiries.  

---

I wouldn't follow this advice.   Disputing inquiries is generally a waste of time and even if successful wouldn't result in a meaningful FICO score bump.

When you fill out a credit application at a dealership you're giving them permissable purpose to shotgun your credit application, unless you specifically put it in writing otherwise. 

[coldfusion]

---

@pizzadude wrote:

---

@expatCanuck wrote:

I'd start making those calls.

And I'd also formally dispute the inquiries with each bureau. You did not authorize them.

Think of it this way -- if the dealer clearly advised you that there would be 10 inquiries, what would you have said?

You did not authorize the inquiries.  

---

I wouldn't follow this advice.   Disputing inquiries is generally a waste of time and even if successful wouldn't result in a meaningful FICO score bump.

When you fill out a credit application at a dealership you're giving them permissable purpose to shotgun your credit application, unless you specifically put it in writing otherwise. 

---

This is absolutely the correct answer.

If you start disputing these inquiries you risk having them flagged as being frivolous disputes and closed out, but in any case you aren't likely to have any success.

[Minorincrediting]

When you say "you risk having them flagged as being frivolous disputes and closed out" what do you mean? What are they closing out? Are you saying frivolous disputes affects your relationship with these loan providers if you don't already have an account with them?

[TheKid2]

---

@Minorincrediting wrote:

When you say "you risk having them flagged as being frivolous disputes and closed out" what do you mean? What are they closing out? Are you saying frivolous disputes affects your relationship with these loan providers if you don't already have an account with them?

---

I'm reading this that the DISPUTES themselves will be closed out as frivilous. Essentially, nothing changes except you have dispute comments on your credit profiles. None of this will impact your relationship with loan providers per se, but it certainly could have implications where future dispute investigations with the CRAs. The boy who cried wolf.

When folks sign the paperwork at an auto dealer, they should read it. You're giving them permission to shop for the best rate. And frankly, any responsible consumer should shop lenders for rates! You're not going to get the best deal every time with "1 pull".