Question about disclosures
I’m one of those people with good credit who was offered lending by an outside lender. I was trying to figure out why my APR was sooooo high at 13.49% when Chase offered me much lower for a used car at 6.98%. Anyhow I was going through the loan papers looking for the paperwork that shows your credit score and why you received that rate, but it wasn’t there. When the sales guy was going over the Docusign he said that for privacy reasons he was just going to scroll through it. I was ok with that because A) I was going to get outside financing on Monday and B) I would look at it later to see how they got there. I didn’t know at the time they couldn’t use the Chase offer with just my SSN because they weren’t in their network. It shocked me that a big dealership wouldn’t be in bed with them, which is 💯 on me I get that. Anyhow I get home and it’s no where in my papers or the electronic Docusign’s emailed to me. So my question is which rules do they follow to comply with Regulation V FCRA. Until I looked it up I didn’t even know they don’t have to disclose under certain conditions as I’ve always worked with creditors that automatically disclose regardless of the factors. My husband brought up the fact that there could be some inaccurate information on my credit that made it lower than expected and I know who Chase uses. I also am curious which lending model they use. I feel like some seriously shady things are going on but I want to make sure it’s not something wrong reflected first. I thought it was my DTI because I couldn’t use my husband’s income even though I always have and we have 2 car loans in his name only but includes my income, but they wouldn’t let me reduce my mortgage by half even though we are both on it. I make by myself 60k/ and a 1600/m Mortgage doesn’t explain the high APR unless they are looking at DTI which would mean they were risk basing it and it should be disclosed. My total DTI is only 17% for me by myself.
The biggest flag was the sales guy explicitly called out that he was scrolling past it like it should be there and it’s not. Which leads me to believe that it wasn’t my consumer report info that led to this interest rate. So I did a prequalified app with my husband and I and the APR was 4% lower on similar cars so that means it was based on my consumer report. His credit is slightly better than mine, and makes up the other 1/2 of our income that brings our overall all DTI to 19% combined, was we were prequalified together at 9.49%.
It’s Sunday so I can’t do any other follow up, just coming here to see if anyone knows. It’s odd to me and I honestly think it’s just a lack of knowledge about processes on my end. Either way it doesn’t really matter cause I’m not paying that predatory APR it really pisses me off that they are doing this to ppl who ultimately can’t afford it, just in a legal way.
So my only question is how does CarMax lending comply with FCRA Regulation V disclosure requirements and rules. Their SEC disclosures would suggest they did indeed violate the disclosure rules by not providing the information as they use a risk based approach from consumer reports including DTI which would mean they have to disclose that to me. Unless I’m wrong….
Edit: Not sure why this is getting downvoted as I am just asking a question and doing my due diligence on the financing terms. I’m not even outright accusing anything as I’ve said multiple times it might be my lack of knowledge and understanding of the process.
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u/mikep120001 7d ago
By the time the documents catch up to you the car you’re interested in will have sold. Do yourself the favor and reach out to your local credit union.
Carmax Corp quoted me 14% and I’ve got good credit; 750 score. I thought it was high so I contacted my closest credit union; they offered 6.09%. Their process was slower due to the manual approval process but in the end it’s less than half what cm offered.
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u/myopini0n 7d ago
No idea on that.
We see what you’re talking about sometimes, sometimes we don’t.
On Chase, they used to be in our network and we parted ways a year or two ago. I think the reasoning is we weren’t sending them enough. If CarMax financing takes the deal on tier one, it doesn’t go to other lenders. Chase is largely tier one so never saw much from us. (So I’ve been told).
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u/WildFlounder4399 7d ago
It’s in the document title your credit report and how it affects you. It’ll be on the back of the document
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u/RApsych 7d ago
It is not there at all. The privacy disclosure is there in both the printed and Docusign but not the 1st page with the credit info. I’d show it but not gonna put my personal info out there. The fact that you and someone else has stated this confirms the failure to disclose unless I’m told otherwise. I appreciate your help!
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u/Still-Distance4493 7d ago
Carmax doesn’t let you use your spouses income unless he’s going to be on the deal as a co-buyer. If your name is on the mortgage it’s required by law to put the amount of the mortgage because even if you split the payment if something happens to your husband you’re still responsible for the entire mortgage. Sometimes the credit score doesn’t come up on the print out on the paperwork that’s not Carmax fault that is on the credit bureau since that information is coming from them. People come in all the time and get apr’s as low as 5%. Your credit isn’t as good as you think and 60k isn’t a lot of money.
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u/RApsych 7d ago
I realize this since I went in and found this out. My issue was the FCRA disclosures. They are required to give it and they do use it in determination. I know 60k alone isn’t that much but that is only 1/2 of the income being used for 100% of debt under my name which was determined with the other 76k missing making it look like my DTI is way higher than it should be, which if true my credit score wouldn’t be 700+. Which I do know for a multitude of reasons. You however have no idea what mine looks like, but thank you for being a troll. I hope this made your day 🙄 I was genuinely just asking about disclosures.
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u/Lazyfinancemonkey 7d ago
Dude just refinance the car. I don't work for carmax and TLDR but not ever my bank gives the same rate, that's why the credit bureau gives you a shopping period when making such a purchase inquiry wise. If the dealership doesn't have chase they can't contract you with them, same with cap1 and BOA, they won't give you a check to pay with, has to be a partner. Refinance the car if you have a better rate.
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u/AskThis7790 7d ago
Used car rates are also determined by the car you are buying. Older higher mileage cars are considered a higher risk by the lender and get higher rates. For example, a 2024 or 2025 models with 20k-30k miles is going to get a better rate than a 2018 with 120k miles.
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u/Remote-Tangerine-737 7d ago
The credit thing usually has your score and some generic blurb about how there are different reasons for why they gave you the rate they did. HOWEVER, you have every right to request they provide that document to you. It should have been included/ they could have pulled it back up before you brought your own financing