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#681915 - 02/07/07 05:29 PM Car loans
kitten Offline
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Joined: Jul 2006
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Not prison
I was asked a curious question about car loans: Can a car loan be declined because the applicant doesn't have a driver's license? My response was that there is nothing in a Reg that would address that, as it is not a prohibited reason. If the applicant qualifies based on our criteria, then we make the loan. I would think that might be a call the dealer would make as to whether or not to sell the car.

Any thoughts?
I shall call you Thunder Twonk. ~TfD

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Lending Compliance
#681984 - 02/07/07 06:20 PM Re: Car loans kitten
complianceman Offline
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Joined: Mar 2005
Posts: 687
New Albany, IN
If the person is financially qualified for the loan, the fact that they do not have a drivers license is not an issue. For example, what if a person wanted to purchase a van because they are handicapped and since they have seizures, the state will not allow them to have a drivers license. By not declinign the loan, you could be violating fair lending laws by discriminating.
The opinion stated here is what it is, My Opinion.

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#682003 - 02/07/07 06:41 PM Re: Car loans complianceman
Dan Persfull Online
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Dan Persfull
Joined: Aug 2002
Posts: 47,562
Bloomington, IN
My question would be more along the line can the owner of the vehicle get it insured without a valid DL? If not I definitely would deny based on that reason.

As for denying based on no DL, I tend to agree with complianceman but in reality someone not having a DL is not a protected class. However, the reason they don't have a DL could throw them into one.
The opinions expressed are mine and they are not to be taken as legal advice.

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#682110 - 02/07/07 07:52 PM Re: Car loans kitten
Richard Insley Offline
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Richard Insley
Joined: Oct 2000
Posts: 10,182
Toano, VA
Originally Posted By: mh23
I would think that might be a call the dealer would make as to whether or not to sell the car. Any thoughts?

So if Stevie Wonder wanted to add a Lexus to his fleet, do you think a dealer's going to refuse the sale?
...gone fishing.

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#682963 - 02/08/07 05:37 PM Re: Car loans Richard Insley
Compliance2U Offline
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Joined: Apr 2006
Posts: 110
Stevie Wonder could be buying the vehicle (and appying for financing) for his driver to drive him around in. Stevie wouldn't have a driver's license, but his driver would. Therefore, the vehicle would be insurable.

I would want to get more details than the "applicant doesn't have a DL."

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