Possibly looking for a (new) used car for our daughter and plan to get pre-approved through our credit union so I called them today to ask a few questions... I brought up the topic of how dealers run approvals for buyers and, for example, bank "A" says 4.5% but the finance manager tells the buyer 6.5% (these are made-up numbers) and they are compensated for the higher rate by the lender. The loan rep at my credit union acknowledged that this used to occur but that it's "no longer allowed". She wasn't clear if this was simply their policy (this credit union) or maybe a state law that doesn't allow it. She also said even if I went through a dealer and they (my credit union) said 4.5%, with them, the dealer can't override that number. The credit union does know they just approved someone with social security # 123-45-6789 at 4.5% and won't process it at a higher number.
Anyone know more about this ? Is it a state law / regulation ? I'm in Ohio so I guess this is restricted to people in Ohio that may be familiar. Or is it some lenders have adopted this policy ?
Anyone know more about this ? Is it a state law / regulation ? I'm in Ohio so I guess this is restricted to people in Ohio that may be familiar. Or is it some lenders have adopted this policy ?