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Can someone apply for lending on my behalf if they know I won't be approved?
My husband and I are trying to buy a car, and we found a used car we liked at a dealership. We applied for financing through the dealership and all through the process the salesman kept asking for a higher down payment- which I thought was strange because I had purchased a vehicle two weeks prior, for more than twice the cost of the car we were now trying to buy, with a down payment a quarter of the size this dealership was demanding.

When we saw the loan officer, she told us that "banks" won't finance vehicles more than ten years old, but because of the "relationships" they have with the credit unions in our area, that our loan would be accepted based on our good credit (we are both above 750). When our application was denied, she tried another credit union and assured us that our loan would be approved. When the second application was denied, we each called our banks since I knew I had been pre-approved with mine.

It was then that we discovered the real reason we were denied: the "lowest possible price" the dealership could offer was $2000 more than the vehicle was worth- which was why they tried to get us to put down $2,000, so they could push the approval through. Our banks both said they would be happy to finance a vehicle that old, but they would only finance up to what the vehicle was worth.

A few days later we applied for an auto loan with my husband's bank, and we were instantly approved for more than the amount of the loan we had just applied for, at the best interest rate they offer. I also called one of the credit unions the loan officer had applied at and they told me they have no year requirement for financing, approval is based on the value of the vehicle.

Now I am wondering what recourse I have. I now have two useless hard pulls on my credit, and two loan denials all because this dealership was greedy. Can this loan officer apply for financing on my behalf if she knows for a fact that I won't be approved? Is there any way I can dispute these hits because the dealership flat out lied to me? Is it considered fraud if I received paperwork in the mail that states that my denial was for the wrong reason?

Thanks for any help or advice.

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