In early February I went to a used auto dealer and found a car I liked. I filled out the paperwork and told the dealer the maximum I would like to pay monthly. I gave my approval for him to submit my application - and he went ahead and submitted my application to 4 different banks (that I know of so far). As far as I knew, he would submit it once and if it didn't work out to the payment I wanted he would let me know. Instead, he went ahead and sent my application on to other banks. Is that legal? I gave my approval yes, but not for multiple banks...and now my credit score will be going down because he submitted my application to many banks and I will have numerous inquiries on my credit reports. I contacted the dealer about it, and all he told me was that I authorized him to do that. He also submitted an application for an amount $10,000. higher than the application was for. I was told by him that it was a mistake on his part, but he could not have the inquiry removed. Is that legal?!
2007-03-19 09:44:27 · 4 answers · asked by J M 1 in Business & Finance ➔ Credit
Yes it is legal. When you signed the credit application you gave them all the permission they need to send you to as many banks as they need to to get you approved.
I have been in the finance part of the car business for over 7-years and I have 15-banks at my disposal. It is not uncommon to submit a customer to 6 or 7 banks before I get the approval I am looking for.
2007-03-19 09:52:47 · answer #1 · answered by ? 7 · 1⤊ 0⤋
Yes, this is legal. Actually a credit score will not go down near as much as you would think due to this. A credit score will go down yes a bit due to the inquiry itself however with a major purchase such as a home or car the bureau takes in account that the consumer must go through several banks to get the right interest rate or approval and therefore a purchase like a car or mortgage that has multiple inquiries within a few days is lumped together instead of individual. Now if you applied for several credit cards over a couple of days that would hurt your score alot.
2007-03-19 09:57:01 · answer #2 · answered by Anonymous · 1⤊ 0⤋
if you didnt have anything in writing, then he is legal.. your score wont go down that much, i dont believe, it may be legal, but he dtdnt have to go that far, unless he was trying to get you the best deal.
2007-03-19 09:56:05 · answer #3 · answered by oldtimer 5 · 0⤊ 0⤋
that is fine if you did not want them to submit your credit you should not have gave them your ssn #
2007-03-19 09:52:35 · answer #4 · answered by ***you 3 · 0⤊ 0⤋