Car dealer trying to scam....asking $300 for runing credit application

This is a discussion on Car dealer trying to scam....asking $300 for runing credit application within the Consumer Law Questions forums, part of the Legal Questions & Answers Forum category; Me and my boyfriend were in the market for a car and were looking at few cars including one at this place. This guy showed us the car and convinced ...

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  1. #1
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    Car dealer trying to scam....asking $300 for runing credit application

    Me and my boyfriend were in the market for a car and were looking at few cars including one at this place. This guy showed us the car and convinced us to fill out the application to run our credit to find out what APR we can get approved for... We SPECIFICALLY asked him before even starting to fill out the credit application if there was any fee for it and he clearly said "No". The way the whole discussion went, it was clear that we were interested in the car but we were no where near buying the car. We were at the stage where we were looking at many cars at other dealerships too. He also asked for a check of $6000, which was the amount we said we would put for downpayment, IF we eventually decide to buy the car. He promised that he won't cash it. He called on Monday and the interest rates he offered were not good (7% APR).

    We have found better deals elsewhere so we informed him today what out decision is, which is to not buy this car. As soon as we informed him , he says that the bank has charged him $300 for running our credit application to get interest rates and that he told us about this fee so we should pay for it. This is not true at all.

    He threatened us today on the phone. The threats are that if he does not get his money by tomorrow, he will cash my check of $6,000. If it gets bounced, then he will sue. He said that if we do not pay, he will place so many hard inquiries on out credit that our credit score will be ruined.

    When we were filling out the form. He had also asked for a $6,000 check (the amount we would make a down payment IF we would buy the car). He promised that this is just to put together with the credit application and that it will not be cashed. Also, I have learned that it costs the dealers only about $30-$35 to run the application.

    Isn't he trying to scam us? What are our rights?


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    First of all, giving him that check was a big mistake. Unless you signed some type of agreement, you are not obligated to purchase a car simply by having him run your credit. You should have it cancelled ASAP and report that salesman to the dealer, file a complaint with the BBB. I would personally also contact the local police department and tell them about his threats to run your credit for hard inquiries. That way if he does, you will have a police report attesting to the fact and may be able to sue later for damages. If he calls, let it go to the machine so you can have some proof of his behavior.
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    Thank you for advice

    Quote Originally Posted by Legal Help View Post
    First of all, giving him that check was a big mistake. Unless you signed some type of agreement, you are not obligated to purchase a car simply by having him run your credit. You should have it cancelled ASAP and report that salesman to the dealer, file a complaint with the BBB. I would personally also contact the local police department and tell them about his threats to run your credit for hard inquiries. That way if he does, you will have a police report attesting to the fact and may be able to sue later for damages. If he calls, let it go to the machine so you can have some proof of his behavior.
    I had cancelled the check immediately. Yes, I realize now giving him the check was a big mistake. Thank you very much for great advice. I will post again if I have more questions.


 

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