I purchased a truck back in July of last year. I got a great pre-approved offer from my bank. When I went to the dealer (Chevy) they got me to fill out a GMAC Credit App. (with some pressure). The dealer told me the next day I would need to put more down if I wanted to finance thru them. I said no thanks and that I was going to go thru my bank (USAA). I bought the truck. A few weeks later I got the denial letter from GMAC....ALONG with denial letters from about 5 other banks. I did not think much of it at the time but.... I wish I had. Looking at my CR I have an inq. from the dealer, GMAC, and FIVE other banks. My bank did not even make an inq. The real problem is most of the inquiries are not coded properly. -The dealer was coded as - Automobile -GMAC was coded as - Credit card and travel / entertainment companies. -US BANK was coded as - Banks and S&Ls -ONB was coded as- Banks and S&Ls -NBC-DEALER F was coded as - Banks and S&Ls -BAY VIEW BANK was coded as - Sales Financing on Equifax and as Finance, personal with TRU -NATIONAL BANK OF COM was coded as - All Banks Bottom line is not only was my credit ran 5 time without my permission, the people ( I have other words for them) did not even code the inq. as for an Auto Loan. All of the inq. are hurting my FICO. Do auto dealers normally send your info. to other banks when you fill out a GMAC app. I read the fine print and don't recall anything about other banks. Should I work with these 5 banks to get the inq. recoded or with the CRA's to have the inq. deleted. I guess all of this will not matter in a few months as the year (July) will be up, bu it still makes me mad. Any thoughts or advice is welcomed.
I'm not the expert on this, but from what I've been reading if you signed the GMAC credit app, it most likely covers them when they started shopping you to other banks. They all want to make money on the back end so they try to get some form of internal financing for you so they can cash in additionally. Not sure what recourse you have once you signed the credit app. SOME auto dealers are purely unethical and driven to make every dime possible at any cost! Aside from never giving them repeat business not sure what you can do.
So why not write a non-permisable purpose letter to all but GMAC! Alos, you might want to try doing a forum search with keywords like permissable purpose. I seem to recall that there is also a FTC opinion letter regarding situations like this as well but only someone like Bill Bauer or others more knowledgeable than myself will be able to point you in the actual direction.
Call the dealer and give them the chance to help. I'm in the industry and I can tell you word of mouth means a lot. More often than not you can get them to cooperate. And if they are stubborn dealers usually get very cooperative with people who know they can complain to the AG and Department of Revenue. All states govern the dealers licenses and have dealer complaint forms.
Re: Re: Auto Loan/GMAC/Auto Dealer Question Mike777, Do you know what is actually on the GMAC application? I do not have a copy. When I called one of the banks today they said the application gave the dealer permission to send to as many banks as they wanted. I do not remember that. Of course they did not have a copy.
Between the dealers and FICO you're screwed: Not sure which one holds you down while they put it to you though. The dealer or FICO !
Re: Re: Re: Auto Loan/GMAC/Auto Dealer Question Bottom line is not only was my credit ran 5 time without my permission, the people (I have other words for them) did not even code the inq. as for an Auto Loan. All of the inq. are hurting my FICO. jmbarrs | =============== Why do you think Inquires play such a big role with fico? To take advantage of just this kind of situation of course The END ************************* LB 59
Re: Re: Re: Auto Loan/GMAC/Auto Dealer Question jmbarrs- I don't have a copy of the GMAC form. I can't stand GMAC. Everyone who comes to my lot and tells me they are using them, I switch to someone else. Call the dealer and tell them you need a copy of the form they should have a blank one if they don't have a copy of the one with your signature. Read the form and all the small print. If it allowed for them to shop out your loan, I would call and talk to the dealer and find out if they can help. Did you buy a car from them? If you did they should be more cooperative. It's worth a shot. I don' t think it is an unreasonable request. I would try to help out a customer with this problem. Car dealers are PART human.
