Don’t you ever get the feeling that you’re being had when you’re in one of those car dealerships talking to a somewhat sleazy salesman about a car you want? Like they’ve got something up their sleeve…. Don’t think you’re crazy, because car sales associates out there do it all the time: in this post, it’ll be called the “Patriot Act Scam.” Here’s what it is:
When you go to finance a vehicle, and you’re already prepared with your own financing through your credit union or some other online lender, but are stymied by a salesperson who stipulates that you are “required” to fill out a credit application anyway because of the U.S. Government Patriot Act, know that it is indeed a very real scam. The dealer’s only running your report through dozens of banks and institutions to increase your APR, thereby getting more of a commission out of the sale.
Something important you need to know: nowhere in the Patriot Act does it require you to fill out a credit application or give out your social security number. The Act specifically deals with banks and other financial institutions requiring a loan number and drivers license number–nothing else! When a car salesperson asks for you to fill out a credit application as required by the Patriot Act, the ultimate truth is that salesperson is lying through his or her teeth. You’re being scammed.
Why all the lies? Because it’s easy. Usually if you’re looking to buy a car, you’d normally believe anything you hear. Some salespersons or dealers take advantage of it. No longer, though. The deceit will stop. Watch out for these scams, because you’ll lose money on the car you want to buy. And no one wants that.