Consumer complaint received 2019-03-22
Product: Credit reporting, credit repair services, or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Credit inquiries on your report that you don't recognize
Company: FORD MOTOR CREDIT CO. (CA)

I recently went to purchase a commercial van at XXXX XXXX XXXX for my company. We recently incorporated the business and wanted to start building credit so we were going to apply for a commercial loan with my personal guarantee. We needed the van ASAP so we requested financing through Ford Credit. We were directed to submit our application online and the local dealership would run financing for us. We submitted the application XX/XX/XXXX online. We received an automated reply back that my credit score was XXXX so we assumed that meant it was approved. 

My XXXX phoned in on Saturday, XX/XX/XXXX to negotiate the price of the van and was told the company didnt have enough credit but they were following up on a few things. They said to come in Sunday XX/XX/XXXX and they would have all the paperwork. They called him back to say they needed a higher down payment to approve the loan ( {$6000.00} ). We had cash to pay in full but wanted to build credit for the company so we told them any amount was fine. When we arrived Sunday XX/XX/XXXX, financing was not available and we couldnt stay around to wait. We still never heard back by Monday, XX/XX/XXXX but I received an alert on my credit report that they had run 7 inquiries, all declined. 

I found out later that lenders immediately decline personal loans for a commercial vehicle. Our corporate credit was declined due to no credit history ( which we knew already ) so they kept re-applying to 6 other lenders for a personal loan. It kept getting declined because  we were buying a commercial van. The financing team of a dealership should know this. I called in my complaint immediately to the General Manager because I had only authorized them to run my credit through Ford Credit and I wanted those inquiries removed immediately. 

Meanwhile, we still didnt have a van and still needed to build credit so I decided to go to my bank to apply on XX/XX/XXXX. 
I applied as a corporation with myself named as a co-applicant, but received an adverse letter stating I was declined due to high number of recent inquiries by creditors on your credit report. 

When I called back the General Manager, he told me that if the credit inquiries are grouped all together and Im approved, it wouldnt reflect poorly on my credit. This is false, they show up on your credit report as hard inquiries and may take up to 2 years to fall off. It dropped my credit score 6 points which for some people with poor credit, could mean a lot. 

He followed up with the 7 lenders and 1 credit union was willing to approve a personal loan for a commercial vehicle based on my income. At this point, I felt trapped and had to purchase the vehicle to get the loan so it wouldnt reflect poorly on my credit report. I have few accounts on my credit report because I am financially responsible and save instead of taking on debt. 

When I went in to finalize the loan details, several shady things happened : - They said people normally just leave the application form blank and they can fill it in. For obvious reasons, I declined and filled out my own paperwork. 
- The lien title section was none but they told me they would fill it in after with the credit union information. I requested photocopies of what I signed. 
- They said they would give me a 3.64 % rate but the paperwork was written up at 8.99 %. She assured me they would make it work for the final loan. I insisted that they update the paperwork before I sign anything. 
- They told me to leave a bunch of sections blank ( e.g. reference address ) because the bank never checks. The credit union followed up and requested all information they told me I didnt have to include. 

This is my formal compliant to the CFPB. These are immoral lending practices that force people to buy a vehicle from a dealership because they run so many credit enquiries you cant get financing elsewhere. They know you need a vehicle ASAP to run your business. Their financing team also follows shady practices ( advising you to leave application forms blank with a signature ) that could really take advantage of someones credit.