• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Questionable Notice of Adverse Action

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

CarBuyerEE

Junior Member
What is the name of your state (only U.S. law)? Maryland
My credit score:822
Financed a car at dealership through Lexus Financial Services. Drove it home the same day. Exactly one month later, Notice of Adverse Action comes in from a 3rd party credit reporting and solution company on behalf of the dealer. 1) Called Lexus and was told the dealership put in the same loan application twice so they approved one and decline the other so they think the decline of the duplicate app caused the Notice, but my loan is still good. 2) Called the dealership's manager. Was told that dealership doesn't provide the loan since they are not the bank. They merely arrange the loan. They decline everyone's loan and then send the loan to the lender which in my case is Lexus, and my loan is good. 3) Called the 3rd party company who sent the Notice, and was told that the Notice gets sent out because the dealership pulled my record. Notice gets sent out to EVERYONE, but my loan is good.

An attorney who I'll be meeting with doesn't think #2 (the statement from the dealer's manager) makes sense. Are my options, 1) Return the car which I do not mind as it accumulated 198 miles during one month and is still in good condition, and as long as the dealership doesn't charge outrageous amount for any damage they may claim they found beyond normal wear and tear. 2) Get another lender - No that's too much work and expense. I'll just buy the car elsewhere 3) Pay off the car in full

I'll be meeting with an attorney, because overall the situation doesn't seem to make sense to send me this kind of a Notice, and still telling me my loan is good. What do you think?
 


LdiJ

Senior Member
What is the name of your state (only U.S. law)? Maryland
My credit score:822
Financed a car at dealership through Lexus Financial Services. Drove it home the same day. Exactly one month later, Notice of Adverse Action comes in from a 3rd party credit reporting and solution company on behalf of the dealer. 1) Called Lexus and was told the dealership put in the same loan application twice so they approved one and decline the other so they think the decline of the duplicate app caused the Notice, but my loan is still good. 2) Called the dealership's manager. Was told that dealership doesn't provide the loan since they are not the bank. They merely arrange the loan. They decline everyone's loan and then send the loan to the lender which in my case is Lexus, and my loan is good. 3) Called the 3rd party company who sent the Notice, and was told that the Notice gets sent out because the dealership pulled my record. Notice gets sent out to EVERYONE, but my loan is good.

An attorney who I'll be meeting with doesn't think #2 (the statement from the dealer's manager) makes sense. Are my options, 1) Return the car which I do not mind as it accumulated 198 miles during one month and is still in good condition, and as long as the dealership doesn't charge outrageous amount for any damage they may claim they found beyond normal wear and tear. 2) Get another lender - No that's too much work and expense. I'll just buy the car elsewhere 3) Pay off the car in full

I'll be meeting with an attorney, because overall the situation doesn't seem to make sense to send me this kind of a Notice, and still telling me my loan is good. What do you think?
You are meeting with an attorney because a third party credit monitoring company gave you an adverse action notice because the dealership pulled your credit report? You do realize that its NORMAL for your credit report to be pulled when you finance a car?

I don't know that you need be concerned with any options at this point. You have been told that your loan is still good.
 

quincy

Senior Member
What is the name of your state (only U.S. law)? Maryland
My credit score:822
Financed a car at dealership through Lexus Financial Services. Drove it home the same day. Exactly one month later, Notice of Adverse Action comes in from a 3rd party credit reporting and solution company on behalf of the dealer. 1) Called Lexus and was told the dealership put in the same loan application twice so they approved one and decline the other so they think the decline of the duplicate app caused the Notice, but my loan is still good. 2) Called the dealership's manager. Was told that dealership doesn't provide the loan since they are not the bank. They merely arrange the loan. They decline everyone's loan and then send the loan to the lender which in my case is Lexus, and my loan is good. 3) Called the 3rd party company who sent the Notice, and was told that the Notice gets sent out because the dealership pulled my record. Notice gets sent out to EVERYONE, but my loan is good.

An attorney who I'll be meeting with doesn't think #2 (the statement from the dealer's manager) makes sense. Are my options, 1) Return the car which I do not mind as it accumulated 198 miles during one month and is still in good condition, and as long as the dealership doesn't charge outrageous amount for any damage they may claim they found beyond normal wear and tear. 2) Get another lender - No that's too much work and expense. I'll just buy the car elsewhere 3) Pay off the car in full

I'll be meeting with an attorney, because overall the situation doesn't seem to make sense to send me this kind of a Notice, and still telling me my loan is good. What do you think?
Like LdiJ, I am a bit confused about what you see as a problem. You have been told by Lexus that your loan is good; you have been told by the dealership that your loan is good; you have been told by the third party company that your loan is good.

It is possible that the dealership mistakenly submitted the loan application twice but Lexus caught the duplication and declined the one while approving the other. I do not see any reason to return the car, get another lender or to pay off the car in full.

Are we somehow missing your legal concern?
 

Zigner

Senior Member, Non-Attorney
I recently had the SAME thing happen (albeit, it was Toyota Financial). My theory is that the advertised terms were a slight bit different, so they send the notice to cover their butts. Your loan is fine.
 

CarBuyerEE

Junior Member
You are meeting with an attorney because a third party credit monitoring company gave you an adverse action notice because the dealership pulled your credit report? You do realize that its NORMAL for your credit report to be pulled when you finance a car?

I don't know that you need be concerned with any options at this point. You have been told that your loan is still good.
Well, I'm fine with them pulling my credit, but the Notice of Adverse Action says my credit has been denied or I've been offered the credit at lower terms. If I've been denied, the dealer can take my car back at my cost. I applied for the loan with Lexus, not with the dealership, so I don't understand why the dealer had to turn down me down.
 

Zigner

Senior Member, Non-Attorney
Well, I'm fine with them pulling my credit, but the Notice of Adverse Action says my credit has been denied or I've been offered the credit at lower terms. If I've been denied, the dealer can take my car back at my cost. I applied for the loan with Lexus, not with the dealership, so I don't understand why the dealer had to turn down me down.
AGAIN, it's not a big deal. It's a form letter.
 

WVengr

Junior Member
The only concern I'd have in your situation is if this "notice of adverse action" shows up as a negative mark on your credit report. Just keep track of the correspondence thus far, and if a mark does show up, then dispute it.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top