Dealer question: OFAC and Credit Report?

I have reserved a ’23 TRD Offroad from a Seattle-area Toyota Dealership. It is supposed to be here first week of April. The sales rep was helpful in finding the truck I wanted. We did it all through email and text messaging. I’ve never met the sales guy face to face.


Note that I was send to this dealer through the Costco Auto program, and I am financing the truck through my own Credit Union. This dealership is a Preferred Dealer according to my Credit Union. My goal as buyer is to maximize my savings and keep the financing in my own institution.


Now it gets a little dark …


Last week the rep contacted me via email and said to make the “deal go smoothly” I needed to email a picture of my Drivers License and Proof of Insurance. This seemed reasonable to get the title paperwork going. Then he told me I need to fill out a Credit Application and provided a link. I remined him that I was financing through my Credit Union so the dealer did not need have a Credit App. He told me that the credit application was “to satisfy the OFAC requirement”. Doing a bit of web research it was obvious that the OFAC did not have anything to do with Credit worthiness and in fact the OFAC did not require anything but my name. I told the sales guy what I found and he said the in fact they need they needed my name, address, data of birth and Social Security Number for OFAC. I sent links from the OFAC site, Edmonds.com and couple more where they clearly state that there is no need to collect all that personal data for OFAC. The sales guy then abruptly stops and told me his Sales Manager would call.


I got call from the Sales Manager who essentially said the same this as the sales rep. I repeated my stance and we went back and forth few times. My argument being I don’t want to unnecessarily generate a Credit Inquiry and I don’t want to unnecessarily share out my Personal Information. His argument essentially being that the “deal will go much smoother if I fill out the Credit Application”, and if I don’t “then it may take several extra days to take possession of the truck”. This has all left me with very sour feeling, as if I’ve been threatened.


Question for dealers out there – does this sound like a big misunderstanding: am I being paranoid about the whole thing? I subscribe to the “Trust but Verify” rule so I’d love to hear opinions on if this deal is normal operating procedure or something else. I get it the dealership want to maximize profit but I don’t want that to happen at risk to my Credit Score or my privacy.


Thanks for taking time! Appreciate any comments folks have.


Ryan

 

Former sales director, you’re being overly paranoid. OFAC is a thing and when we run a credit application there was a box for the 3 credit bureaus and a separate box for just OFAC (in case of cash buyer).

Also if your credit union is direct with the dealership just do it at the dealer. Legally they cannot charge you more than the rate the CU qualified you at. Additionally it will save you time from having to run to the credit union with a BOS then back to dealership. Too much legwork, make them do the legwork for you and just enjoy the truck.

 

Dealers are playing stupid games lately ... because they can. They tack on unnecessary packsges you cannot refuse for profit margin. They require non-refundable deposits (as if they cannot find another taker within 2 hours).

My take is that they want to know you are serious, but still it is not as if they cannot find another taker within 2 hours.

Ask the credit union to contact and report you are serious and keep your privaye information private. If the dealer cannot live with it, you choose if you WANT to play THEIR game.

EDIT ... or listen to the "former sales director" if you want. It really is your choice.

 

It's part of the dealer game they play..another profit center for them. If anything play ball with them, and ask them to beat the rate from your credit union. One more hit on your credit report from the dealer isn't going to affect anything, since you're "loan shopping."

 

I paid in cash and they still ran my credit … 2x first truck and second truck. My credit score wasn’t impacted either time.

it’s just their procedure. Who cares

 

Normal. Dude, don't you have anyone in your real life (dad, brother, uncle, etc) that you can ask about shit like this? You learn from people more experienced.

 

If I paid cash the only things they need from me are driver license and insurance card. I have a credit-freeze for a reason and I do not want to lift it just for their unnecessary procedure. "More strong-arm tactics" is what others seem to be saying.

 

I have always financed vehicles over the years through credit unions and the dealers have always asked to still submit a credit application. I don't know whether it's true or not, but they want that done in the event something falls through with your pre-qualification elsewhere, and it would default back to their financing to make sure they get their money.

As for OFAC, I have worked on software processing credit reports for vehicle and other types of loans, and yes OFAC is a thing and it is something that comes back from the credit bureaus to make sure you're not flagged on a sanctioned list, and they need all your information to accurately make that request from the bureaus. This all sounds pretty normal to me based on my experience.

 

My option was to walk out and maintain my inquiry less credit or go home in a new truck.

 

It is not about the inquiry count. It is about people who have no need to access my credit being told FO. As to choice ... we gave them that power and if you want better you must demand better.

Which is why the "non-refundable deposit" is more strong-arm tactics ... deal only with us or lose your $1000.

 

Except an OFAC isn’t pulling your credit at all… I give my employer my SSN when I get health benefits, does that mean they’re pulling my credit too? Oh crap now they have tAcTics too to strong arm me into an HMO!

 

They shove a credit application in front of me when I have a cashiers check, they will see the cashiers check walk out the door. Driver license and insurance is a state requirement. If they want my SSN for other reasons I may give it to them. But they can shove their "credit application".

 

Car dealers are required to run your name through a government list so that another government agency you’ve never heard about has a reason to exist.

 

It seems if you are not getting a loan from the dealer, than OFAC isn't needed- but its the Office of Foreign Asset Control - and it's to make sure you are not on a list of say, bad guys. I'd be weary.

 

Then call it what it is ... security verification. But dump the "credit application" part.

 

I work for a Credit union (18years) as manager. I have also done lending for 8 years (approving-denying credit apps, and funding dealer contracts). We work with dealerships using the CUDL system (credit union direct lending) and even if you are pre-approved by your credit union, most dealers will request the information you mentioned. Yes, they need to run an OFAC check to make sure you are not a damn terrorist or Narco. lol.

Don't think too much into it. Go get your new ride.

 

OFAC is a thing and has nothing to do with financing or paying cash.

Dealers are held accountable for documenting each and every sale of a vehicle; in some states like CA, the information must be stored for up to 7 years in the event of an audit, or worse.

OP is just being paranoid, and you're just adding to it.

Former Sales Manager and Finance Director here.

 

Cashiers check does not guarantee that the dealer is compliant with OFAC. Your bank maybe.

 

Man the amount of paranoia and misinformation here is disturbing. Some of y’all need to remove your tin foil hats and do a little Googling before you freak out.

 

Interesting answer. If I had someone I could trust I likely wouldn't be asking here, right? I don't tend to buy new cars, I'm still driving the Wrangler I bought new in 2009. Given my lack of experience I fall back to lots of web research and posts to forums like this. That way things are done now, dude