Consumer complaint received 2021-01-29
Company: Open Dealer Exchange, LLC
State: CA
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Getting a loan or lease
Sub-issue: Credit denial

Complaint:
On XX/XX/XXXX at approximately XXXX XXXX  I went to a dealership called XXXX Only located at XXXX XXXX XXXX XXXX XXXX XXXX, NV XXXX. I was interested in a XXXX XXXX XXXX XXXX  XXXX VIN # XXXX in which I was able to take a test drive and fill out a finance application. I stated to the finance manager XXXX that I have a thin credit profile but my mother who is located in New York is willing to cosign who has a strong credit history and an excellent credit score. I asked XXXX if we can run the application with {$0.00} down and that I would be willing to put money down if any issues with an approval came up and XXXX stated to me that would be fine but also stated that in order for my mother XXXX XXXX to co-sign that when it comes down to signing for the car that they would have to send the documents to a notary in New York so she could notarize the purchase agreement and then have it sent back to the dealership in XXXX XXXX in which we agreed. My mother filled out a finance application online and we both received notifications for multiple inquiries run by different auto financing companies on our credit reports. On XX/XX/XXXX I called to follow up in the afternoon about the approval and was told by an employee that there was a fraud alert and that they are working on an approval and that they will reach back out to me the next day before XXXX XXXX  with an answer. On XX/XX/XXXX I called at XXXX XXXX and was told I will get a call before XXXX XXXX. I then received a call from XXXX XXXX and he stated he is in the dealership 's finance department, he stated that they are unable to receive an approval from any bank and that there was nothing they can do to help us. My friend XXXX XXXX was on a 3-way with XXXX as I was already on the phone with him previously and he stated to him that, that there is no way any bank did not approve me and my mother for financing on this vehicle and when he asked how much money would I need down to get the car, he stated there is no bank that will approve me with any amount of money down. XXXX mentioned that is a lie as any bank will approve you with a certain amount of money down as for example that even if the car was {$100000.00} and I put {$80000.00} down as I only get approved {$20000.00} in the financing, that an approval is possible and there are inquiries on my credit report that show they attempted to get financing, XXXX also mentioned that I could file a complaint with consumer affairs and XXXX stated this conversation is done, goodbye and hung up abruptly. I live about 10 minutes away from the dealership and around XXXX XXXX  I departed to head to XXXX Only, to confront them in person about the conversation I had on the phone with their employee. I got there and waited approximately 15 minutes until I was approached by several employees and was explained that apparently, no bank will approve me and my mom without {$10000.00} down and even then he stated that wouldn't even guarantee an approval. I asked why all of a sudden I'm eligible for financing with {$10000.00} down when I was told on the phone that no amount of money down will approve me for financing. They brought me to an office in which we discussed further about the situation and I then asked for a list of banks of which apparently denied me for credit in which XXXX subsequently then put his hands on the table and stated " we are done here '' and left the room without answering my question. They proceeded to then ask me to leave the premises as they do not want to do business with me. I asked again for the bank information and for their Dealer License # and they would not provide any information to me. I proceeded to call XXXX to get the dealer 's license number which I was able to get after they responded and their Dealer License Number is Nevada # XXXX. My friend XXXX XXXX was on facetime with me throughout the entire encounter at the dealership and after I was kicked out he proceeded to call the dealership in which he spoke to an employee who stated that apparently there were too many " red flags '' and they chose to push me away as a customer because they did not want to deal with it. He stated to them that my mother and I were initially born in the XXXX XXXX and became US citizens in the late XXXX which may have raised one of those red flags as our social security numbers are exactly the same except for 1 number, he also stated that I looked young and they work to prevent fraud since there is so much going around lately. This is a violation of the Consumer Credit Protection Act as it states " The Equal Credit Opportunity Act ( ECOA ) prevents lenders from discriminating against people or businesses based on non-financial factors. This is a consumer credit law that also applies to businesses as the majority of the others only apply to people. According to the ECOA, its illegal for a lender to discriminate against someone applying for credit or a loan based on the following criteria : Age, Race, Religion, Marital Status, Color, The Receiving of Public Assistance. In specific situations, lenders are allowed to ask for this information, but that information can not be used to determine whether or not it gives credit to an applicant. It also can not be used to determine the terms of those applicants who are approved. '' I was discriminated against by XXXX Only because I am XXXX which is a violation of race and because it was explicitly stated by an employee to my friend XXXX XXXX that I looked young which is a violation of age. They also committed an FTC violation for Unfair or Deceptive Acts or Practices. Section 5 ( a ) of the Federal Trade Commission Act ( FTC Act ) ( 15 USC 45 ) prohibits unfair or deceptive acts or practices in or affecting commerce. This prohibition applies to all persons engaged in commerce, including banks. Commerce is defined as " the activity of buying and selling, especially on a large scale. '' in which XXXX Only falls under that definition. It states under 15 USC 45 that " Unfair Practices An act or practice is unfair where it causes or is likely to cause substantial injury to consumers ; can not be reasonably avoided by consumers ; and is not outweighed by countervailing benefits to consumers or to competition. '' This situation that arose caused substantial injury to me by not only putting multiple inquiries on my credit which affects me adversely in applying for future credit products but also defames my character as I was treated like I was a criminal trying to commit fraud in front of other clients at the dealership because of these " red flags '' they stated to have noticed. They also violated The Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681-1681y, in which it states the Obligations of All Users of Consumer Reports which XXXX  Only falls within that category as well as they are using my Consumer Report to extend applications to banks for credit. It states on Section I ( C-2 ) " Adverse Actions Based on Information Obtained from Third Parties Who Are Not Consumer Reporting Agencies. If a person denies ( or increases the charge for XXXX credit for personal, family, or household purposes based either wholly or partly upon information from a person other than a CRA, and the information is the type of consumer information covered by the FCRA, Section 615 ( b ) ( 1 ) requires that the user clearly and accurately disclose to the consumer his or her right to be told the nature of the information that was relied upon if the consumer makes a written request within 60 days of notification. The user must provide the disclosure within a reasonable period of time following the consumer 's written request. '' I mailed out a letter on XX/XX/XXXX requesting that information and have not received a response. My mother and I were NOT provided any information on my denial of credit and was increased a charge of {$10000.00} as a downpayment to attain credit without being furnished with any information on my approval terms a nd my right of the nature of the information that was relied upon to tell me that the banks will not approve me and my mother for financing. I will make it aware that the FCRA states " Liability For Violations Of The FCRA Failure to comply with the FCRA can result in state government or federal government enforcement actions, as well as private lawsuits. Sections 616, 617, and 621. In addition, any person who knowingly and willfully obtains a consumer report under false pretenses may face criminal prosecution. '' My consumer report was also obtained under false pretenses ( another violation of Federal Law ) by XXXX Only as they refused to provide financing through the banks to purchase their vehicle after retrieving my credit report and caused again damaging inquiries on my credit report that can affect me from getting financing in the future. I also filed an internal complaint on XX/XX/XXXX with XXXX directly by calling their customer support line in which I spoke to XXXX from customer service who stated he successfully filed an internal complaint that he will forward to XXXX Only but stated to me that he can not guarantee I will receive a response as dealerships tend to throw complaints like this " under the rug ''. ( XXXX  XXXX Only is one of the credit inquires appearing on my credit report and is why the complaint is also submitted with XXXX as the inquiry is inclusive with XXXX Only and is equally responsible as an agent of XXXX  Only in terms of receiving my credit report and they refusing to provide my approval/denial terms )

Company response to consumer: Closed with explanation