Last month my BF and i went to look at some cars.We decided on a used Acura and started about the process of buying the car.My credit was pretty good in the low to mid 700's.
Anyways the dealer ran my credit what turned out to be multiple times.We decided not to get the car because of insurance issues.After looking at my credit report i see that the dealer ran my credit like 5 times through five different auto financing agencys. I was not informed in any way that my credit was being run multiple times.These are hard inquires and as a result my credit score has dropped significantly.
What can/should i do?
2007-11-08 08:22:22 · 9 answers · asked by flexduty 2 in Cars & Transportation ➔ Buying & Selling
If you signed a credit application, then you gave them the right pull your credit. Even though you only signed it once, they can still use your information to find the best lender for your situation.
On the application itself, it states that by signing, you are authorizing the dealership, their lenders, and so on, to view your credit report for purposes of reviewing and if an account if created, taking collection action of the account. You can ask for a copy of the application you signed.
If you did not sign one, then the dealership should not have pulled your credit. You would be able to contest if this was the case. Dealership are required to keep all signed applications in the event a customer feels that the dealership wrongfully pulled their credit. When this happens, the dealership must produce the signed copy.
As far as the 5 inquiries, it is not uncommon for dealerships to rate shop to find you
http://www.theautoevaluator.net/resources.html
2007-11-08 08:54:38 · answer #1 · answered by The Auto Evaluator™ 7 · 6⤊ 0⤋
first off, you cannot sue the dealer for your credit being run. Let me rephrase that.. I am sure some attorney will be delighted to take your money for nothing. They did not run it multiple times, the banks did. In the US, for mortgages and car loans, there is a 2-4 week window where you can have your credit run as often as you like, and it counts as one pull, due to the fact that a consumer has the RIGHT to shop for the best deal. It is correct that something else caused your score to drop. It could be anything including a new credit account being opened, or balances on existing credit being higher,etc. Also, how do you know your score has dropped significantly? Did you pull your own credit as a consumer? Did someone pull your credit for a mortgage? If so, be aware that different type of credit pulls have different criteria. Consumer credit scores will be different from auto enhanced scores, which will be different than scores pulled for mortgages.
2007-11-08 09:43:32 · answer #2 · answered by Rafael P 4 · 0⤊ 0⤋
You always have the right to challenge, in writing, any information in your report. Notify the three reporting agencies, Equifax, TransAmerica and Experian, of what happened. I would add that you believe the multiple checks were done purposely to harm you because you decided to not do business with the dealer. I would also write to the dealer to tell them that you have received information that they did this and that your credit score has been affected as a result. Demand that they explain their actions. If they say it was a mistake, demand that they re-contact each agency and give their explanation. If they refuse, then I would consult an attorney. But do what you can on your own first.
2007-11-08 08:30:07 · answer #3 · answered by curtisports2 7 · 0⤊ 0⤋
It all depends on what you signed. If the document says they can run it without any stipulation as to how many times, you are s.o.l. on this one for going through the dealer. You can always appeal the inquiries through the credit bureaus.
Another reason NEVER to get financed through a dealer. You should already have approval through a bank, credit union, etc. for the price of the car you are looking at before you walk into a dealer. That takes away the majority of the trick they can pull to get more money out of you.
2007-11-08 08:30:19 · answer #4 · answered by Anonymous · 1⤊ 0⤋
the auto evaluator's answer is 100% correct. To add to that, after 30 days, you can contact the credit bureaus, in writing via dispute, and request the inquiries be removed from your report. Although you applied, you did not engage in business with those companies. If no trade lines show up from those companies (hence the 30 days), they will remove them.
Yes, your score is affected right now (appears you are applying for multiple credit) but the score will go back up next month.
2007-11-09 00:36:31 · answer #5 · answered by airjar 2 · 3⤊ 0⤋
The point of giving the dealer your information is so they can get your loan approved. They in return sent it out to get you the best rate and term. It is not their fault at all. If you want to sue them for that then you shouldn't be out shopping for a car. Besides the most it could of went down was only a few points you must of did something else to your credit like high balance on credit cards open a few new lines of credit. Don't be stupid.
2007-11-08 08:56:14 · answer #6 · answered by anitad_1108 2 · 0⤊ 2⤋
YES!!
you are in luck.. you can sue for any reason in the USA. However, Considering you signed a waver saying they can run your credit and gave them your SS#. I would say the case is soft to say the least.
2007-11-08 08:26:05 · answer #7 · answered by Benny 1 · 1⤊ 0⤋
chances are your credit will recover before this ever gets to trial making this cause of action moot - therefore forget it .. besides, what are the damages ?
2007-11-11 05:22:45 · answer #8 · answered by thefatguythatpaysthebills 3 · 0⤊ 0⤋
ofsourse ....yessssss !!!!!!!!!!!!!!!!!
2007-11-08 08:28:07 · answer #9 · answered by margarita*has*da*answers 2 · 0⤊ 1⤋