Legal Question in Credit and Debt Law in California
Paid for new car w/check. Dealer required credit check under the Patriot Act?
My wife and I obtained financing through BMW financial. The rate wasn't good enough so we reapplied through Capital One, got a good rate, and a ''blank check loan''. When we went to the dealership to purchase the car, the management at the dealership would not allow us to buy the car without allowing them to run another credit check on us. They said it was part of the Patriot Act. I asked them to put it in writing and they refused. When we refused, they said goodbye. We wanted the car, so we allowed them to do this. Were any of our rights violated or did they violate any laws by doing this?
2 Answers from Attorneys
Re: Paid for new car w/check. Dealer required credit check under the Patriot Act?
While there is a provision of the Patriot Act that requires those who are engaged in a trade, such as a car dealership, to report to the Financial Crimes Enforcement Network (part of the U.S. Department of the Treasury) transactions which involve "coin and currency receipts of more than $10,000," simply running a credit check does not fulfill the dealer's obligations under the Act. Moreover, it may have dropped your FICO score. You can reach me at 6 1 9 - 2 9 1 - 7 7 7 8 for a no obligation consultation.
Re: Paid for new car w/check. Dealer required credit check under the Patriot Act?
I have never heard of such a thing. If your credit rating has gone down because it was run, then you have some damages. If they would have refused to sell the car without the credit check and you fefused to let them run it then you would have had a case for breach of contract and could have sued for specifice performance.
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