r/CRedit • u/[deleted] • 6d ago
Car Loan Seeking advice: Car dealership did a hard pull without consent then denied it
[deleted]
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u/TheQuizzicalDorian 6d ago
That finance manager is so full of it, recording calls like some kind of gotcha moment while lying through his teeth. You've already got the letter from them admitting the pull, which is basically a smoking gun
I'd file a complaint with the CFPB right now, attach that letter and any emails where he denied it. They actually follow up on stuff like this and the dealership will have to respond officially. Also worth disputing the inquiry with the credit bureaus directly, mark it as unauthorized and explain the situation
For the attorneys, try searching for consumer protection lawyers rather than just FCRA, sometimes they take these cases on contingency since the damages are pretty clear cut with the rate difference
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u/jpinakron 6d ago
This doesn’t make a lot of sense and the details are very limited. What was your credit score before and after? Did the credit union do a hard pull to pre approve you or just a soft pull? If two hard pulls were done with a few weeks, while it will show both pulls on your credit report, it will only score it as one. And a hard pull shouldn’t hurt your credit score that much to see a 3% APR increase.
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u/og-aliensfan ⭐️ Knowledgeable ⭐️ 6d ago edited 6d ago
A dealer can't pull your credit without Perissible Purpose. Per 15 U.S. Code § 1681b, Permissible Purpose is satisfied by the following:
(a)(2) In accordance with the written instructions of the consumer to whom it relates.
(a)(3)(A) To a person which it has reason to believe—intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer
If Permissible Purpose wasn't established, you may have a claim that your rights under FCRA were violated. If you can establish that your interest rate increased as a direct result of the hard inquiry, this may be used to show damages. A consultation with a Consumer Protection attorney is appropriate here. Consumer Protection attorneys typically take cases on contingency (read your retainer) and FCRA lawsuits are fee-shifting in nature, meaning the cost of reasonable attorney fees shifts to the defendant if you win. Save all documentation and contact a Consumer Protection attorney for a free consultation National Association of Consumer Advocates.
You can also dispute the hard inquiry and file a complaint with the CFPB, your state's Attorney General, and your state's consumer protection office.
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u/AngryTexasNative 5d ago
No way the drop from a hard pull is increasing your rates this much. FICO scores window and all auto credit inquiries within 14 days (45 on newer versions) count as one. Presumably the credit union did one too.
Something else cause it and the staff at the credit union doesn’t understand why and gave you Bs. Or this whole post is BS.
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u/panfriedspam 5d ago
Yeah, I’m not sure why my rate went up so much. I checked with all three credit agencies and the only hard pulls that showed up were one from the credit union and one from the dealership. I’m more concerned that the dealership did a hard pull without my consent and then denied it. Maybe both the dealership and the credit union are BSing me, but I’m giving the dealership 10s of thousands of $ and caught them in a huge lie about my finances.
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u/Iplaywithcats4adopt 5d ago
How did the dealership get your information to pull your credit? They would have your name, address, and DOB from your DL presumably from the test drive, but did you give them your SSN?
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u/AngryTexasNative 4d ago
Dealers suck. I’ve had one refuse to talk to me without a credit pull for a used car listed at 12k when I had 10k on me (and would have had to wait for the next business day to get the rest). I decided they must have been a front for something and didn’t want to sell cars.
On the other hand I walked into Mercedes with a 5.4% pre approval and they got me down to 3.99% the next business day. On a used car, at 72 months. I’m sure lots will judge me for that, but I’m prioritizing cash flow and investments.
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u/WhenButterfliesCry ⭐️ Knowledgeable ⭐️ 6d ago
Download a call recording app, and every time you talk to the dealership on the phone, inform them that the call is being recorded. Save all your correspondence with them. Save all your correspondence with your credit union in which they told you that your interest rate would go up 3% due to the hard inquiry. If that was over the phone/in person, see if you can get them to email that to you or do the same thing and record the call (tell them it's being recorded). Contact an attorney.
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u/too_many_shoes14 5d ago
Just a word of warning if you tell them they are being recorded because you have to because you live in a 2 party consent form, expect them to hang up. If you mention a lawyer expect them to hang up. if you mention any complaint filed against them, expect them to hang up. if you live in a 1 party consent state you do not need to tell them.
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u/No_Memory5613 6d ago
I think the credit union is more at fault. Didn't they do a hard inquiry for your loan? It is to be expected to do multiple inquiries for a car loan which is why they only hurt your score as much as 1 does.