Dealer(s) told me they needed to run my credit report even though I'm...

[firebird1999us]

...not financing the car. Several different dealers made reference that they needed it to confirm my identity. I've read in a few places that this is a scam and that the dealer only wants that info to run my credit report so they can run it at several different lenders and make kickbacks from them as aresult for initaiting financing....or soemthing like that??

http://www.carbuyingtips.com/scams.htm

Abuse of the Patriot Act?
We are getting complaints from car buyers who have their own car financing from a credit union or an online lender, and the car dealer forces them to sign a credit application anyway, falsely claiming "it's required by the Patriot Act". There is no verse in the Patriot Act that I can find requiring you fill out a credit application, or allowing dealers to run credit checks on you when you bring your own car financing. Their bogus claim sounds believable, but armed with verbiage of the law, you can stop them. Here's a link to the Patriot Act: http://www.lifeandliberty.gov/highlights.htm. Ask the car dealer to tell you which exact section of the Patriot Act requires them to make you fill out a credit application when you have your own financing, and collect your Social Security number, and run your credit report. Since they claim it's required, they should be able to show you the verbiage (HINT: They can't). The Patriot Act (H.R. 3162), Section 326 "Verification of identification" requires banks and financial institutions to verify your ID before you open an account. Since you are not opening an account with the dealer and they are not a bank, they don't need you to fill out a credit application or a Patriot Act form. The Patriot Act form I filled out for my mortgage only asks for your loan number and driver's license number, not your SS#, and it does not say "Credit Application" on it. The Patriot Act specifically calls out driver's licenses or passports for ID verification. Nothing more. Dealers fool you into filling out the credit app, so then can run your credit through a half dozen local banks in an attempt to lead you into the dealer's financing so they can get more commission. But why all the lies?


Anybody got any ideas here? I'm tempted to put up a fight about it when I go to buy tomorrow?:iono:

[brainless twit]

I had the same thing happen to me with the first Yaris I looked at purchasing. I was paying cash, yet they insisted they had to have my social security number and all kinds of paperwork to sell me the car. They did mention the Patriot Act when I protested, come to think of it. I ended up leaving, and I financed a new Yaris at a different dealership instead of buying the used LB. It will cost me more, but my privacy is worth more to me - it's one thing for them to use my information if they're providing the financing, but there is no reason for it if you are paying them upfront.

Edited to add: Why do they need to confirm your identity, anyway? It's not like you're going to skip out on payment. Your driver's license should be all the confirmation they need.

[firebird1999us]

I had the same thing happen to me with the first Yaris I looked at purchasing. I was paying cash, yet they insisted they had to have my social security number and all kinds of paperwork to sell me the car. They did mention the Patriot Act when I protested, come to think of it. I ended up leaving, and I financed a new Yaris at a different dealership instead of buying the used LB. It will cost me more, but my privacy is worth more to me - it's one thing for them to use my information if they're providing the financing, but there is no reason for it if you are paying them upfront.

Edited to add: Why do they need to confirm your identity, anyway? It's not like you're going to skip out on payment. Your driver's license should be all the confirmation they need.

Well that's my thinking...I'm getting one hell of a deal on the car, but I don't want my credit pinged for no apparent reason:iono:

Anyways, I'm going protest if i comes up...I think I'll call the local BBB tomorrow too!

[1NZYaris1]

Stick to your guns on this one , all they need is proof of drivers licence, and
proof of address (ie power,phone bill etc)
Well thats whats required here in New Zealand anyway.
best of luck .Are you still going for the Yellow One. :thumbsup:

[dvlnblkdrs]

copied direct from patriot act: establishing minimum new customer identification standards and recordkeeping and recommending an effective means to verify the identity of foreign customers



so they are full of POOP! tell em to shove that yaris where the sun dont shine.. you can find one at a dealer who isnt gonna run a credit report.. everytime your credit is run, it drops a few points...just so ya know... and people can see where and how many times you have been accessed...

[firebird1999us]

Got this response:

We pull your credit once to verify that you are who you say you are, If your credit score is under 600 we can't except a personal cheque,it would have to be certified cheque.

We make you sign a privacy notice stating we do not share this information with anyone.!!!

It's more a security measure we let you leave with our vehicle and a hold cheque...?

Hope this helps.

[mikenacarato]

i would skip the check part and just pay cash if they are saying its for check reasons.

[brainless twit]

So why not just get a certified check from your bank, then it doesn't matter what your credit score is? Their logic still doesn't make sense to me, but if that's the big deal, get a cashier's check and be done with it. I still don't see any reason why they need to run a credit check.

[33OH]

+1 on the certified bank check.

[Tamago]

didn't read the thread, but in short, they DO need your social. they DO need your ID but they don't need to run your credit.

salesmen have to fill out a form for the IRS if someone drops over $10,000 cash on a car IIRC.. keeps people from laundering money through a dealership.

[Bob_VT]

I would be seeking another dealership

[PreciousPups4U]

Paid cash, well certified check, for my older daughter's car a couple of years ago. They did not ask for a SSN, just my id.

[otterhere]

I had the same thing happen to me with the first Yaris I looked at purchasing. I was paying cash, yet they insisted they had to have my social security number and all kinds of paperwork to sell me the car.

Hmm. Did you pay CASH cash (hard cash), cashier's check, money order, or personal check? I used the last, from a money market account, and I signed some papers; quite likely I also gave them my SSN. If so, I didn't think twice about it; I was just so ready to get outta there and be done with salesmen!

If they ran a credit check on me, I wasn't aware, but why would they have?

:iono:

[YarisSedan]

Yeah they have to run your credit report if you are paying with a personal check. Unless your walking in with briefcases full of cash they are looking out for thier best interest. If they pull your credit and they see bad credit with reposetions they would think twice about accepting a personal check and want you to pay with a certified one to entrust they wil be keeping th emoney.

[firebird1999us]

I talked to a very good friend of mine's dad who is in management at a completely seperate car dealership that I am not buying a car from...he said that that is standard procedure nowadays and that by law they are prohibited from shopping your credit information to anyone. And also that it is purely for security purposes. So considering I've talked to 4 seperate dealers at this point and they all have the same answer I think that's just kind of how it is on new car purchases in Georgia:iono:

[ddongbap]

Roll up baller style. With a suitcase filled with cash. Except have someone else hold it. Have him wear a suit. When you snap your fingers, have him plop down the cash, harsh style and open it. hahahha

[ddongbap]

I talked to a very good friend of mine's dad who is in management at a completely seperate car dealership that I am not buying a car from...he said that that is standard procedure nowadays and that by law they are prohibited from shopping your credit information to anyone. And also that it is purely for security purposes. So considering I've talked to 4 seperate dealers at this point and they all have the same answer I think that's just kind of how it is on new car purchases in Georgia:iono:Well, I think theres the problem right there. You're asking dealers. You've got to ask a non biased person. Maybe a lawyer.

[PreciousPups4U]

Roll up baller style. With a suitcase filled with cash. Except have someone else hold it. Have him wear a suit. When you snap your fingers, have him plop down the cash, harsh style and open it. hahahha

Awesome. Take photos.

Or maybe a tall blonde in stilettos, fishnets and a mini skirt. make it memorable.

[33OH]

Awesome. Take photos.

Or maybe a tall blonde in stilettos, fishnets and a mini skirt. make it memorable.

Then it would be like Deal or No Deal. Priceless.

You could even dress like Howie Mandel. :biggrin:

[firebird1999us]

Well, I think theres the problem right there. You're asking dealers. You've got to ask a non biased person. Maybe a lawyer.

This is a close friend...he wouldn't bullshit me about anything. Nor does he have any reason to since I'm not buying or planning on buying a car from him:iono:

Talked to a consumer advice person fro the Clark Howard show....they told me this isn't a big deal and that the info cannot be repurposed. I'm not buying or financing anything again anytime soon and my score is high enough it isn't really that much of an issue. I just need to make sure that the paperwork says "one time use" or something of that nature. Talked to a credit agency employee on anotehr forum and he said that there are other ways of getting security/OFAC info that don't involve a credit pull too that I should inquire about:wink:

[Rain]

Three dealers did the same thing to me.
My car wasn't going to be financed but they ran a credit report on me anyway.

[Shroomster]

This is a close friend...he wouldn't bullshit me about anything. Nor does he have any reason to since I'm not buying or planning on buying a car from him:iono:

Talked to a consumer advice person fro the Clark Howard show....they told me this isn't a big deal and that the info cannot be repurposed. I'm not buying or financing anything again anytime soon and my score is high enough it isn't really that much of an issue. I just need to make sure that the paperwork says "one time use" or something of that nature. Talked to a credit agency employee on anotehr forum and he said that there are other ways of getting security/OFAC info that don't involve a credit pull too that I should inquire about:wink:

seriously if you're this scared about your credit score and personal information why don't you bunker yourself up in a bomb shelter with supplies and wait for the end of humanity....you need to live your one life and stop worrying.....


don't know if anyone else sees things this way but damnit.... life was never supposed to comprise of this much b/s....

[firebird1999us]

seriously if you're this scared about your credit score and personal information why don't you bunker yourself up in a bomb shelter with supplies and wait for the end of humanity....you need to live your one life and stop worrying.....


don't know if anyone else sees things this way but damnit.... life was never supposed to comprise of this much b/s....

I worked hard to get my credit score where it is and as a result have no debt and can finance just about anything I want within reason at just about the best rates possible...I'm not interested in someone taking advantage of that or chipping away at something like that. If they only pull it once for the intended purpose I can live with that...but if it gets sent around to everybody and their brother so the dealer can make a buck off of me that's not acceptable:iono:

But lets be honest, if I were really that paranoid about things I wouldn't own two other cars that get teribble gas mileage and have no real practicle purpose just because I think they're fun:thumbup:

[eht13]

Roll up baller style. With a suitcase filled with cash. Except have someone else hold it. Have him wear a suit. When you snap your fingers, have him plop down the cash, harsh style and open it. hahahha
:laugh: This is great. Also, have the guy in the suit with the briefcase (suitcase?) full of cash be wearing sunglasses. And when he opens it to show them the cash, tell the salesperson, "It's all there. Do you need to count it?"

[firebird1999us]

:laugh: This is great. Also, have the guy in the suit with the briefcase (suitcase?) full of cash be wearing sunglasses. And we he opens it to show them the cash, tell the salesperson, "It's all there. Do you need to count it?"

:laugh::laugh::laugh:

[BLAZINBLUEVITZ]

Roll up baller style. With a suitcase filled with cash. Except have someone else hold it. Have him wear a suit. When you snap your fingers, have him plop down the cash, harsh style and open it. hahahha

suitcase would work if it was all $1's but 15k will fit in a brown sandwich bag....

[KCALB SIRAY]

Patriot Act, can't avoid it

[b_hickman11]

http://www.irs.gov/compliance/enforcement/article/0,,id=113003,00.html

It doesnt matter what you are buying...... a car, boat, RV, groceries, beer, etc......if the transaction is more than $10,000 and was paid for in cash, ALL business must fill out an IRS form and send it to the feds. I use to work in a grocery store while I was in college and we would have people come in and wire money to different places all over the world. If it was over a certain amount, we had to have their SSN to fill out some forms. A lot of these laws have been around for decades but they got a lot stricter after 9/11.

[hobojon]

You can freeze your credit reports prior to going to the dealer. They will be able to pull a soft inquiry but not a hard. Soft inquiries will not ding your credit score. It's priceless when they try to pull your report after they have told you they weren't and it comes up blank with just your name and address. it costs $10 per agency (Transunion, Equifax and Experian) in my state. Some states are free.

[Tamago]

didn't read the thread, but in short, they DO need your social. they DO need your ID but they don't need to run your credit.

salesmen have to fill out a form for the IRS if someone drops over $10,000 cash on a car IIRC.. keeps people from laundering money through a dealership.

http://www.irs.gov/compliance/enforcement/article/0,,id=113003,00.html

It doesnt matter what you are buying...... a car, boat, RV, groceries, beer, etc......if the transaction is more than $10,000 and was paid for in cash, ALL business must fill out an IRS form and send it to the feds. I use to work in a grocery store while I was in college and we would have people come in and wire money to different places all over the world. If it was over a certain amount, we had to have their SSN to fill out some forms. A lot of these laws have been around for decades but they got a lot stricter after 9/11.


have we been avoiding the reason why this whole time?

[hobojon]

They may need your social for a cash transaction over 10K but they don't need to pull your credit.
Also, as far as fico scores go, the score you purchase from Fico is the "classic" fico score and will differ from wht the dealer pulls which is the "auto enhanced" version. The auto score weighs installment tradelines more heavily.

[b_hickman11]

Either way....they will need your SSN.....cash or finance

[tomato]

I'm in California and just got a Yaris at a local dealership here.

The same thing happened to me and they also mentioned the Patriot Act as a reason why I should fiill out a Financing Questionnaire eventhough I was paying with a cheque. I flatly refused and threatened to walk out the door at that point, told them that if my money wasn't good enough, I could go elsewhere.

The Financing Manager came out and explained that they needed sufficient info to track me down if the cheque bounced (OK, that sounds reasonable) and they do need some proof of identity because they're liable for the cars (that, too). I provided them my driver's license, my Social Security #, my registration and proof of insurance for the car I was trading in, and allowed them to run the credit report if that really made them happy and that would get me out the door faster. That is all you need to give them, well, in California, at least.