Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Auto Loans
Profile Image

Question By
mycherokee

0 Contributions
0 People Helped
I went to my dealership with approved credit from Capital One, yet my credit was still run
When I asked the dealer ship why they told me it was a law now

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
88 Contributions
350 People Helped

Pulling credit

Federal consumer protection and national security laws require that dealers verify the identity of buyers, according to Bradley Miller, associate director of legal and regulatory affairs for the National Automobile Dealers Association (NADA). The Patriot Act has requirements meant to counteract terrorists who might use car buying to launder money. Other federal regulations, known as Red Flag Rules require dealerships to protect against identity theft. Pulling a credit report is a quick way to verify that the person presenting himself as a buyer isn't actually trying to steal someone else's identity.

In a legal sense, a dealer only needs a "permissible purpose" to access a person's credit, Miller says, and there are a number of such instances. Usually, it occurs when a consumer wants to take advantage of low-interest financing via the dealership. But it would also be permissible, for example, for a dealer to ask for a credit report before accepting a personal check from a customer. It may be the dealership's only hedge against taking a bad check when sales take place on evenings or weekends. That's when banks are closed, and it's difficult to verify that the funds are available.

Having said that, the dealership is required to have your permission before accessing your credit and doing so for verification of identity can be avoided and other means provided.  They have no legal right to pull your credit against your wishes.

Top Contributor
61 Contributions
171 People Helped

hmm

I am not sure about it being a law but it shouldnt hurt if its within a 90 day window.

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.