Product: Vehicle loan or lease

On Friday XX/XX/XXXX, My wife and I applied for an auto loan for a new XXXX  XXXX XXXX XXXX with Bank of America and other lenders to see where I can get the best rate. XXXX XXXX XXXX for Bank of America. The loan was done via online and then we got the chance to speak to a Loan officer named XXXX XXXX. No relation to me. She explained that we got approved for the loan. I told her that the delivery date for the XXXX was Saturday XX/XX/XXXX, pending inspection of vehicle and taking delivery of vehicle of course. I wanted to lock rate so she sent us the loan documents to sign. I read the terms and conditions and expectation was that the loan would be funded at delivery of vehicle to my wife and I. I also had other pre-approvals so we had options on who we were going to go with. XXXX never expressed or explained that by signing the loan docs that we were agreeing to fund the loan prior to driving the vehicle, inspecting the vehicle or even signing the XXXX XXXX with XXXX to finalize the purchase of the vehicle. In previous experiences once we sign the loan documents we either receive a cashiers check or paperwork to then go to dealer to finalize purchase price, warranties, etc .... Long story short, we had an emergency and could not take delivery of vehicle. I contacted XXXX to reschedule. They mentioned there was no problem and they would just release the vehicle to next buyer and that I would have to wait for next vehicle. I was in no rush. My son 's health was more important to me at that time. Plus from my understanding an approval from bank was good for 30 days. So Monday XX/XX/XXXX I open my Bank of America application to send a XXXX payment and I noticed an auto loan reflecting for the amount of {$50000.00}. I assumed it was a mistake so I contacted Bank of America to let them know that the loan was reflecting on my app. They inform me that the loan was funded. I questioned how? I told them I never received delivery of vehicle. I also never got the chance to go to dealer and finalize the purchase agreement with them etc. They claimed that a signed purchase agreement was not necessary because I signed the loan documents. I was confused because loan documents are one  thing and agreement with dealer is another. So basically they funded an unsecured loan since I did not have a vehicle in my possession. They said all they could do was submit to cancel the loan and that my wife and I would need to re-apply again which I found to be disheartening since we already had applied and didn't want to continue to submit inquiries on our credit report. I asked if the loan would appear on our credit report and they said that it would show as an open loan and then a closed loan. In doing so that would affect our credit score even more. I asked them why they would have a process that seemed backwards and why the rush in funding a loan? They said that because its digital that thats how their process is. I said then you should have made it clear not to sign the loan documents until after I take delivery of the vehicle because on the contract all it stated was the terms of the loan and conditions but from my understanding and previous experiences that would take place after delivery of the vehicle not prior. XXXX had set their expectations as well. Anyways, Bank of America then said I had to call XXXX which I did and that they had to return the money. XXXX said the loan should have never been funded and they would email a specific department. Then they said I had to speak to Bank of America to cancel the loan. Got a hold of the XXXX XXXX department on Tuesday XX/XX/XXXX and they said that they will cancel the loan and it will take up to 7 days. I asked why the loan wasn't canceled on the XXXX since that was when I communicated with the loan officer and they said they did not see that she had canceled the loan. Now we are just in a bad predicament and feel like everything was rushed, not sure if it was done to reach end of month quota but the optics of everything feels that way. We have never experienced anything like this before. I have the non singed purchase agreement from XXXX. I have the signed loan docs from Bank of America which to our understanding was to ensure we locked the rate and expressed loan rate, months etc at time of vehicle delivery. I called XXXX on Wednesday XX/XX/XXXX and expressed that I wanted to escalate the situation. I received a call from a supervisor 2 days later which was this morning. No urgency. He gave me same excuses on how their process is. I explained that their process seems to hurt consumers. It does not protect them. For example, rushing to funds a {$50000.00} loan to a dealer, a private party etc without a customer having the vehicle in possession may cause harm and loss of funds to borrower. In no way, shape or form should a loan be funded without a final signed purchase agreement or at least without the delivery of the vehicle. In doing so, you're putting the consumer in a forced situation to take delivery of the vehicle because if they do not then their loan which should not have been funded prematurely will be closed and they will have to re-apply again. This process and experience has caused a lot of anxiety. Has put us in a situation where our credit score may be greatly affected and the ability to continue with the purchase of the vehicle ( which we are waiting on next vehicle ) may be compromised if our credit report reflects a recently opened auto loan or our score drops affecting other pre-approvals that we currently have. This process needs to change. It should be tailored to protect their customers and not put them in difficult financial situation. It should make the purchase of a new vehicle seamless and not confusing and non traditional. We would receive a cashiers check and had purchase power when negotiating with a dealer when we signed loan docs. In this digital age it seems as if they are putting the carriage before the horse. If it is digital then they should give us the ability to inspect vehicle , drive it, accept the delivery of it and finalize everything with dealer. At that point the loan can get funded digitally just like they want. Lets change this process and protect borrowers. Not hurt them.