I called Chevy Chase Bank, which holds my car loan at 15.35% and asked for an interet rate reduction a few weeks ago, and was told simply that someone from the right department would call me in about 24 hours. Instead, I got a letter a week later saying that my application for credit had been declined as they do not offer credit on the terms and conditions requested. I had never been told I was applying for anything, and supervisors have since told me that the rep would have to complete all sorts of questions like salary, employment, THI, etc. in order to have submitted an application. I was never asked any of those questions. I think the rep copied off of my original application as they even sent the decline letter to an old address, not my current address. So, in short, my question is whether or not they had PP to pull my credit report if I wasn't applying for credit, keeping in mind that I do have an open account with them. On a side note, a supervisor today told me that the reason for the decline is that they aren't refinancing out-of-state auto loans anymore, the announcement being made "last week." The decline letter was dated 12/31/2003, and she knew she was screwed the moment I pointed that out. At that point, she gave me the number for the underwriting group (closed, of course).
A car loan is a closed end installment loan. The only way to reduce the interest rate would be to start a new loan. Even if "you didn't apply for a new loan", it might be said that you verbally authorized them as you were asking for a change in terms. Although there is nothing in writing, if you REALLY wanted to push this, most calls are recorded.
