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#2112220 - 12/27/16 05:06 PM Purchase loan preapprovals through a dealership
Beachbum, CRCM Offline
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We have been approached by a local commercial vehicle dealership (box trucks, refrigerator trucks etc.) that would like to be able to preapprove business applicants who wish to purchase business purpose vehicles at their dealership and have them financed through our bank. Since the closing documents would be signed at the dealership, the bank would also like to have the dealership preapprove and offer one of our business credit cards to qualified applicants at the time of loan closing. This dealership would use an underwriting matrix approved by the bank. My gut tells me this would not be allowed, but I can't find anything to support it. Would FACTA rules cover business purpose loans?
any thoughts would be appreciated.
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#2112304 - 12/28/16 02:30 PM Re: Purchase loan preapprovals through a dealership Beachbum, CRCM
Beachbum, CRCM Offline
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Anyone?
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#2112327 - 12/28/16 04:10 PM Re: Purchase loan preapprovals through a dealership Beachbum, CRCM
rlcarey Offline
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rlcarey
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Galveston, TX
What does FACTA have to do with it and why do you think it would not be allowed??
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#2112330 - 12/28/16 04:18 PM Re: Purchase loan preapprovals through a dealership Beachbum, CRCM
Beachbum, CRCM Offline
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I was thinking FACTA because the credit report originally used to underwrite the vehicle purchase would also be used to preapprove a credit card that the business owner did not actually apply for. I understand FACTA is a consumer regulation and the credit card would be a business card and not for personal, family or household use, but would it make a difference if the Credit Card payment history would be reported on the business owner's credit report if they guaranteed the card?
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