I've been a lurking on these forums for a while -- I have learned a lot from your collective experiences. I had a very weird experience when I went to collect my red Ascent at a Seattle-area dealership today. It had been paid for. I could use some advice on what to do next.
Here is my story. About a month back, I negotiated a deal over the phone with a saleswoman at the local dealership. I went to meet her, signed the order form, and put down a $500 deposit. I was very clear with the saleswoman that I would not be financing the car. I was told "no problem" and that a credit check wouldn't be required if I wired the remaining funds before collecting the car. Personal or cashiers checks were not an option.
A few days back, the saleswoman provided me the dealership's bank account number and I sent over the funds. This was to be our family's first Subaru and we were all very excited.
After hearing today that my car had arrived and everything was in order, I went to collect it. I inspected the vehicle with the saleswoman and then went inside to do the paperwork.
I provided my drivers license and insurance information. The dealership then wanted me to sign a "Consumer Credit Application" and the accompanying FCRA permission form to run my credit report. I reminded my saleswoman that I don't need financing and hence won't be signing these forms. The atmosphere started getting tense when I stood my ground. The Sales Manager walked in and I was told that these forms are not for a credit check but for an "OFAC compliance check". I pointed out that the forms were clearly asking for permission to run a credit check and said nothing about OFAC. The Executive Manager was consulted on the phone and apparently she too said that there would be no way out of this.
This is what I have learned about OFAC compliance -- it is the U.S. Government's effort to clamp down business with banned individuals. The US Department of the Treasury maintains a public Specially Designated Nationals (SDN) list. Any dealership (or actually any one of us) can search a name against this public database at the US Treasury website. See link
Just to be clear, I am not on the list. Since the wait was getting unbearably long, I showed the saleswoman the above self-service website. She searched my name and confirmed that there was no "hit".
Now, I am wise enough to know that dealerships don't like it when you pay cash because it robs them of additional profit. However, how can you corner me into signing a credit application when the first result on Google for "car dealership credit report scam" implicates a Subaru dealer! See the link for yourself. Scams like this show up all over the web. Unscrupulous Subaru dealer names come up a lot! Therefore, I was proceeding cautiously.
I want to point out that I was happy to sign any specific "OFAC form". I just won't pretend that a "Consumer Credit Application" is that. But the dealership had no such OFAC forms on hand.
I sympathize with my poor saleswoman. She was trying her best to navigate the situation with her bosses. Together with her, I even created a customized form that just had my name and required identifying information that said "For OFAC Check Purposes Only". However, the Sales Manager would have none of it -- he wanted a signed credit application period. He was extremely rude and asked me to rescind the deal and take my money back if I was unwilling. However, very conveniently "finance department people" had all gone and "I wouldn't get my funds today".
It came down to either I sign the credit application or leave the car. I walked out of the dealership in disgust! As I type this, the dealership rests happy with both the car and money.
What should I do? What does Subaru get out of torturing customers who simply want to protect their credit information and want a straightforward, all-cash transaction? I do plan to email SOA and post their response here.
Do I have any other recourse? Does a dealer in the State of Washington (or elsewhere) have the right to coerce someone to agree to a credit check by falsely invoking federal anti-terrorism and trade sanction laws? Does the FTC or FCRA address such issues?
Here is my story. About a month back, I negotiated a deal over the phone with a saleswoman at the local dealership. I went to meet her, signed the order form, and put down a $500 deposit. I was very clear with the saleswoman that I would not be financing the car. I was told "no problem" and that a credit check wouldn't be required if I wired the remaining funds before collecting the car. Personal or cashiers checks were not an option.
A few days back, the saleswoman provided me the dealership's bank account number and I sent over the funds. This was to be our family's first Subaru and we were all very excited.
After hearing today that my car had arrived and everything was in order, I went to collect it. I inspected the vehicle with the saleswoman and then went inside to do the paperwork.
I provided my drivers license and insurance information. The dealership then wanted me to sign a "Consumer Credit Application" and the accompanying FCRA permission form to run my credit report. I reminded my saleswoman that I don't need financing and hence won't be signing these forms. The atmosphere started getting tense when I stood my ground. The Sales Manager walked in and I was told that these forms are not for a credit check but for an "OFAC compliance check". I pointed out that the forms were clearly asking for permission to run a credit check and said nothing about OFAC. The Executive Manager was consulted on the phone and apparently she too said that there would be no way out of this.
This is what I have learned about OFAC compliance -- it is the U.S. Government's effort to clamp down business with banned individuals. The US Department of the Treasury maintains a public Specially Designated Nationals (SDN) list. Any dealership (or actually any one of us) can search a name against this public database at the US Treasury website. See link
Just to be clear, I am not on the list. Since the wait was getting unbearably long, I showed the saleswoman the above self-service website. She searched my name and confirmed that there was no "hit".
Now, I am wise enough to know that dealerships don't like it when you pay cash because it robs them of additional profit. However, how can you corner me into signing a credit application when the first result on Google for "car dealership credit report scam" implicates a Subaru dealer! See the link for yourself. Scams like this show up all over the web. Unscrupulous Subaru dealer names come up a lot! Therefore, I was proceeding cautiously.
I want to point out that I was happy to sign any specific "OFAC form". I just won't pretend that a "Consumer Credit Application" is that. But the dealership had no such OFAC forms on hand.
I sympathize with my poor saleswoman. She was trying her best to navigate the situation with her bosses. Together with her, I even created a customized form that just had my name and required identifying information that said "For OFAC Check Purposes Only". However, the Sales Manager would have none of it -- he wanted a signed credit application period. He was extremely rude and asked me to rescind the deal and take my money back if I was unwilling. However, very conveniently "finance department people" had all gone and "I wouldn't get my funds today".
It came down to either I sign the credit application or leave the car. I walked out of the dealership in disgust! As I type this, the dealership rests happy with both the car and money.
What should I do? What does Subaru get out of torturing customers who simply want to protect their credit information and want a straightforward, all-cash transaction? I do plan to email SOA and post their response here.
Do I have any other recourse? Does a dealer in the State of Washington (or elsewhere) have the right to coerce someone to agree to a credit check by falsely invoking federal anti-terrorism and trade sanction laws? Does the FTC or FCRA address such issues?
