QUESTION: Can the car dealer run my credit report and put me in a car loan without my permission when I'm paying cash?

August 9, 2005

Hello Tony

I recently bought a car and I paid cash. I was certain I will not be financing and opted not to provide my social security number.

They said they will not complete the deal without it and they absolutely must get my SSN. I gave up and filled out their information, along with my driver's license number, and just about every other piece of personal information I could think of.

In the final paperwork process, they had the computer set up so I could see what they were entering and I noticed they were trying to setup financing terms.

I inquired why he is doing anything related to financing, because I'm paying cash. His reply was "In case your check doesn't go through, we'd like to make sure we have financing arranged."

Why did they downright demand for my SSN when I'm paying for the car cash? Plus I believe they pulled my credit report.

Does the law(state of Oregon here) allow this, and are they required by law to disclose they're running a credit report?

It's been over a week and I see that my check has not been cashed.Is it possible that they're processing a loan under my name?

Thank you,

(Name withheld by request)

Answer:

Hi,

Well first of all, most states require a social security number to transfer a title into your name. It could be that is the reason they wanted yours. Of course if that's the case, they should have told you.

As far as that line of bull they told you "In case your check doesn't go through, we'd like to make sure we have financing arranged" I'm sure that is illegal.

Especially after you told them "No Financing!"

The only way they could put a loan through is if you signed all the loan papers. Tell me you didn't do that! If you signed loan papers, well...then you have nobody to blame but yourself.

As long as you didn't sign loan documents they can't just put a loan through without your permission.

They can't run a credit check on you either without your written consent...usually by having you sign a credit application. If you didn't sign one and they ran your credit you can go after them legally.

You can find out if they ran your credit by requesting a copy of your credit report from the credit bureau. Any inquiry into your credit will be listed on your report. Get Your Free Credit Report.

To be sure they are not trying to screw you call the owner of the dealership and or the General Manager. Express your concerns and ask why the finance guy told you what he did. Tell them all they had to do was to call your bank to verify your check or request that you actually bring cash.

If they try to pull anything on you file a complaint with the Better Business Bureau and with your state's Attorney General's office. And tell the dealership this is what you will do if they try to screw you.

All my very best...

Tony Iorio