[DitDah]

Hoping someone can give me some insight here... I paid BMW up front for my car...no financing. I got notice from my credit monitoring that my rating changed... BMW did a "hard" credit check (Twice) and my score lowered 19 points. So, it went from 8xx to 7xx. I really don't care per se...however, I asked my dealer why they even bothered since I don't remember authorizing a credit check and I wasn't financing through them. The answer I got back:

"The reason we run a credit check is that with today’s society the possibility of identity theft is very real. To protect our clients and us, with every car sold here, we will run a credit check on up to all three bureaus to confirm a person’s identity."

The only reason I flag this is because I have never heard of this...ever. I'd appreciate any dealers out there to weigh in...or anyone else with some knowledge in this matter.

[karupspc]

My situation was a lease through BMW FS. Local dealership ran a credit check about a month after the initial $1000 deposit for the custom order. Then a week or so prior to closing, BMW FS ran a credit check.

[DitDah]

In your case...I'd expect a credit check. I mean, a lease is basically financing it (in my simple mind at least)... My case however...the dealer was paid the full price of the car...done. So it makes no sense to me that they would have done a credit check. Especially for the reason I was given...to verify my identity? I've personally never heard of such a thing.

Anyone give me an understanding of how you verify someone's identity with a credit check? Might be possible or even normal, but in my 45 years...it's the first I've heard of it.

[FC4]

So you filled out a credit application just for fun?

[DitDah]

no...never filled out any credit form. As I said...I handed them a check for the full value of the car. I never applied for credit at BMW nor financed through them...nor asked about it. They conducted the hard credit check on their own accord and gave me the reasoning provided in the OP

[Lost Horizon]

Did you give them a certified check, or just a personal one?

[DitDah]

I bought with a loan thru USAA (my bank)...so, USAA has a form, which is like an electronic check I guess...the dealer was familiar with the form and process. I handed that to the dealer, they input the info requested on it...and send it in to USAA...payment should be made by the next business day.

Still doesn't explain their explanation of verifying my identify.

[ssmtsx]

Originally Posted by DitDah

I bought with a loan thru USAA (my bank)...so, USAA has a form, which is like an electronic check I guess...the dealer was familiar with the form and process. I handed that to the dealer, they input the info requested on it...and send it in to USAA...payment should be made by the next business day.

Still doesn't explain their explanation of verifying my identify.

How did the dealer get your ssn? I used navy fed to finance my car and I wouldn't sign a credit app from the dealer. They seemed to understand and to my knowledge they did not run my credit.

If you did not sign a credit app and the dealer ran your credit you can have the hard pull removed from you credit report. The dealer can not pull your credit with out your consent.

[300hp]

I think there is a list of people who are banned from buying from BMW. They may have bought cars and sold them in China. Since you were a cash buyer they needed to make sure you are who you are and therefore not on this list. The dealer was just instructed to run a check and the answer he gave you is the standard response.

[IndotagSwizz]

Originally Posted by DitDah

no...never filled out any credit form. As I said...I handed them a check for the full value of the car. I never applied for credit at BMW nor financed through them...nor asked about it. They conducted the hard credit check on their own accord and gave me the reasoning provided in the OP

You probably filled up a credit application and didn't notice because if they checked your credit they need a lot of info not just a name a ssn. Plus it's illegal without your consent and you can sue. I personally find this impossible to believe to be honest.

[Fugly M3]

Originally Posted by 300hp

I think there is a list of people who are banned from buying from BMW. They may have bought cars and sold them in China. Since you were a cash buyer they needed to make sure you are who you are and therefore not on this list. The dealer was just instructed to run a check and the answer he gave you is the standard response.

This...it was on the national news I believe...people in foreign countries have hired people here to buy cars with cash and then they send them overseas...when a 335i costs 200k USD in china...one for 55k plus shipping is pretty lucrative.

[Alamat]

Originally Posted by E46M54325Ci

This...it was on the national news I believe...people in foreign countries have hired people here to buy cars with cash and then they send them overseas...when a 335i costs 200k USD in china...one for 55k plus shipping is pretty lucrative.

Pardon my ignorance as that actually makes sense but its illegal?

With regards to the credit check, no one can run a check unless they have consent, not to mention the required info like IndotagSwizz says.

[Orion4]

If you did not provide wirtten or verified electronic consent, they do not have authorization to run the credit check. Re-read ALL your paperwork to see if someplace buried in there is a statement authorizing the credit check. It would have to be in one of the documents that required your signature or initials. If not, then ask the dealership who gave them permission or have them show you what gave them the right to run the report. As you are aware, running unnecessary reports (even with excellent credit) impacts the number.

[hanszilla]

They run your credit to ensure that you are who you say you are, no fake names (for drug trafficking) and for a background check (to see if you had any automotive related felony or to see if you were a terrorist with the risk level bs), even buying cash they still have to check the background. Well....at least what's what I was told by my buddy who is a GM at a dealership.

[DitDah]

I will have to wait until I get home to look at the documents...I must have signed something...but I don't recall signing anything related to authorizing a credit check. I don't recall giving my SSN either... I'll check all this when I get home.

[mrcheezle19]

Originally Posted by Hansiepooh

They run your credit to ensure that you are who you say you are, no fake names (for drug trafficking) and for a background check (to see if you had any automotive related felony or to see if you were a terrorist with the risk level bs), even buying cash they still have to check the background. Well....at least what's what I was told by my buddy who is a GM at a dealership.

This right here, it is simply to prove you are who you say you are and every person is ran through a database for links to terrorism. I have to get into this like every 2 weeks with customers because they somehow think I just want to "flip them to financing through us"

[Fugly M3]

Originally Posted by Alamat

Pardon my ignorance as that actually makes sense but its illegal?

With regards to the credit check, no one can run a check unless they have consent, not to mention the required info like IndotagSwizz says.

illegal...yes, designed to protect manufacturers and preserve tax collection...among other more politically palatable reasons

I don't know how they could run credit without authorization...that's between op and dealer

[ronanz]

Originally Posted by mrcheezle19

This right here, it is simply to prove you are who you say you are and every person is ran through a database for links to terrorism. I have to get into this like every 2 weeks with customers because they somehow think I just want to "flip them to financing through us"

Not entirely true, OFAC can be checked without running credit

[jbr5049]

Not sure where this identity verification idea comes from. I have purchased many cars and have NEVER had to provide my SSN to the dealer.

Ford, BMW, GM... none of them have EVER asked for my ssn.

[rking117]

this is very troubling to me. I believe in every state in the union it is illegal for a company to run your credit without your prior written consent. That is why we have forms we have to sign in the first place. If it were me and this happened I would make one more call to them and tell them that you reviewed your paper work and no where in there was an authorization for you to run my credit and that at the very least you want a written apology for this since it has dinged your credit 19 points due to the fact that they hit your credit twice. Becasue of this you will be considering the financial loss that you will occur due to it and be consulting with an attorney if they choose not to. Paying for a vehcile in cash is NOT against the LAW as long as the person who is buying it DOES pay all the applicable taxes and fees EVEN if they pay is torn 1's,5's and 10's like they were drug dealers. (I wouldnt recommend doeing that becasue they could call the police and have you investigated but still the point is cash is cash)

[DitDah]

I intend on doing pretty much exactly that. I have to wait until I get home about 12Nov to review the paperwork. Until then...I'll just have to put this on the back burner. I will come back to this thread and update you all on my findings and any developments...if any.

Appreciate everyone's input. Thanks

[KneeDragr]

19 points seems really high. The last time I applied for a car loan ( when GM was running 0% in 2010 ), mine only dropped 3 points after 2 dealers ran it in the course of 1 week.

Unfortunately, even though my score was 820, both times GM rejected the finance application. I was told by the dealer that any score over 780 gets rejected for 0% because they know you are going to make all your payments on time and thus cant apply the heavy fines and default financing when you miss one. So I took the cash off and took the $ out of my savings account.

The funny thing was, you could request a reason for denial, which I did. And it came back "insufficient credit history", which is a joke as I am mid 40's have paid off 5 cars, multiple motorcycles and 2 mortages.