DCU Opened Loan Without Authorization - Next Steps?

[marsbars439]

Hello all,

I recently took delivery of a new Model Y. I had received a loan offer through DCU and successfully rate matched with Tesla. The DCU loan documents were never signed, and a few days ago I received alerts that a new loan was opened on my credit report by DCU. I also received a notarized letter from DCU saying that they do not have a title on file to release to me (obviously, since the loan was already completed with Tesla/Wells Fargo a few weeks ago).

While potentially a mistake made by DCU, this essentially amounts to fraudulent activity using my credit. Very long wait times, unknowledgeable reps, and multiple transfers each with their own very long wait times have made this nearly impossible to get addressed by DCU. Any thoughts on next steps I should take? Dispute with the credit bureaus? File complaint with CFPB? Thank you in advance for your help.

 

[mcassady]

Are you sure that they actually opened an account, or is it just showing that they made an inquiry? If it's an inquiry, that's standard since they had to run your credit in order to approve you for the loan. But if a new account was actually opened, the quickest way to get it resolved would be to contact DCU, despite the long wait times, since they can reach out to the credit unions directly. It may take a month or so for it to fall off your report.

 

[marsbars439]

Yes, they actually opened a new account. All of the reps seemingly have no idea what to do and just keep passing me off – it's been very frustrating.

 

[shadow21]

Give the a chance to sort it out, escalate it to supervisors,etc. If they won’t/can’t the issue, try filing a complaint with the Consumer Finance Protection Bureau.

Consumer Financial Protection Bureau

The CFPB's vision is a consumer finance marketplace that works for American consumers, responsible providers, and the economy as a whole.

www.consumerfinance.gov

I haven’t submitted a complaint to them before, but I’ve heard it’s a quick way to get attention to issues with banks/etc.

 

[M.D.L.]

Same exact thing happened to me. I was able to talk to a representative who spoke with a supervisor who confirmed I never signed the loan docs and the account was opened erroneously although never funded. Only notice I received was the same letter requesting the title which prompted me to look at my DCU account page and credit report - both of which indicated an open loan. The representative assured me the loan would be closed the next morning. To my surprise when I checked my DCU account webpage the following day, the account was closed. I received a letter a few days later confirming as much. Still waiting for it to close on my credit report. I recommend calling shortly before they close the phone lines for the day as wait times are significant shorter. I also recommend emailing them too. I did and they responded the following day recognizing that I had talk to a rep on the phone the night prior and the issue had been resolved. Not the best experience and quite unsettling but at least they resolved it quickly.

 

[bnb5550]

Well this thread makes me glad that the rate match option is dead and I don’t have to deal with DCU

 

[uclamikey90]

I was going to do what eeryone seems to recommend, rate match, but now that that is dead...it seems like the only (cheap rate) option is with DCU...whose customer service seems to not be the best...

Any suggestions on any other credit unions that can get anything close to 1.24?

 

[thecavalry]

I was going to do what eeryone seems to recommend, rate match, but now that that is dead...it seems like the only (cheap rate) option is with DCU...whose customer service seems to not be the best...

Any suggestions on any other credit unions that can get anything close to 1.24?

Not that I’ve seen. 1.24% is pretty much a unicorn rate. If you’re military you could snag 2.09% from usaa or around there with nfcu. Outside of that I haven’t spent much time looking.

When you’re talking about a loan that’s only a few years long, the difference between 2% and 2.49% isn’t that much. And definitely doesn’t change the monthly payment hardly at all. So, I don’t really feel like I need to sweat it that much.

 

[Geppetto]

Good Morning,

I am quite new to this market and I need your help to clarify a few things. First of all my FICO is currently 598 down due to the fact that my credit cards received a credit line boost last month and it is not up to date yet. I would like to buy a used Tesla Model 3 for around $ 48,000. I have a negative equity trade-in to give, and I would like to give no more than $ 4000 in downpayment.

I asked DCU I received and approved after documents verification email and I sent everything yesterday. My question is how much can they give me a loan for 72 months? I need to know this information before launching into the Tesla purchase.

Thanks
Geppetto

 

[solodogg]

Good Morning,

I am quite new to this market and I need your help to clarify a few things. First of all my FICO is currently 598 down due to the fact that my credit cards received a credit line boost last month and it is not up to date yet. I would like to buy a used Tesla Model 3 for around $ 48,000. I have a negative equity trade-in to give, and I would like to give no more than $ 4000 in downpayment.

I asked DCU I received and approved after documents verification email and I sent everything yesterday. My question is how much can they give me a loan for 72 months? I need to know this information before launching into the Tesla purchase.

Thanks
Geppetto

598 credit score, negative equity trade in an overpriced used car market, and purchasing an expensive car with very little down but a long loan? DCU nor most anyone outside of high risk lenders are going to approve you for that loan. You probably need to work on your lifestyle choices and financial burden before deciding to spend a lot of money on something you clearly can't afford.

Also, credit limit increases will never negatively impact your credit score.

 

[Geppetto]

598 credit score, negative equity trade in an overpriced used car market, and purchasing an expensive car with very little down but a long loan? DCU nor most anyone outside of high risk lenders are going to approve you for that loan. You probably need to work on your lifestyle choices and financial burden before deciding to spend a lot of money on something you clearly can't afford.

Also, credit limit increases will never negatively impact your credit score.

Thank you very much for your reply. Regarding my lifestyle choices are very good and thank you very much for pointing me on that Obviously, I can afford this purchase and the loan payment, thanks to God I am not an idiot and at my age, I know very well what I can and what I cannot do, but again thank you for your financial coaching.

With reference to the credit score, I'm sorry to contradict you, but I advise you to simulate my situation before stating what you are saying. Try NOT to ask for an increase in the credit line on your credit cards, but the banks give it to you anyway because you have an excellent payment history (always due to lifestyle choices), and try to see if your FICO does not fall by at least 95 points, although you can prove with facts that your spend limit total is 23%. Do this simple exercise and then we'll talk about it, and in any case, it doesn't bother me at all because it just takes time for the various credit score providers to receive the new reports with the adjusted credit limit.

I'm sorry for the long answer but I had only asked for advice and I felt treated like a beggar, so it seemed to be the least to always answer politely.

Thanks
Geppetto

 

[solodogg]

With reference to the credit score, I'm sorry to contradict you, but I advise you to simulate my situation before stating what you are saying. Try NOT to ask for an increase in the credit line on your credit cards, but the banks give it to you anyway because you have an excellent payment history (always due to lifestyle choices), and try to see if your FICO does not fall by at least 95 points, although you can prove with facts that your spend limit total is 23%. Do this simple exercise and then we'll talk about it, and in any case, it doesn't bother me at all because it just takes time for the various credit score providers to receive the new reports with the adjusted credit limit.

Wow, you REALLY need to spend a little bit of time doing some financial research.

I personally request CLI on my all of my credit cards every 3-6 months, or whenever the creditor will allow it. Increases in limits show lower overall utilization percentages, which equates to a HIGHER credit score. Even when paying the bill off in full every single month, your balance is reported to the bureaus and counts towards your availability ratio. You can contradict me all you want, but it's factual that a CLI will NOT negatively impact your credit score, especially into the high 500 range. The only thing that's making your credit score that low are your poor financial decisions, which is further proven by your negative equity trade in you are attempting to finance back into yet another loan. If you are seriously carrying credit card debt at 23% of your actual limit every single month, that's just all the more reason you CANNOT afford a Tesla.

FYI, my credit scores are as follows:
CreditKarma Equifax: 835
Discover TransUnion FICO: 844
Experian: 841

So, if you want to have a discussion about who knows what when it comes to financial questions, feel free to have that discussion. Myself and many others that have worked our asses off for most of our lives to be in the situation we are will still flat out tell you that you cannot afford the car, and you're only going to end up filing bankruptcy (if you haven't already with that score) and causing the rest of us to pay for your debts.

Before coming on here asking for advice and making up a story about your financial situation, maybe spend a few minutes doing some financial research and learning how to better yourself instead of complaining about the situation you have put yourself in.

To answer your original question, you need a 730 credit score to get approval for the lowest interest rate at DCU. You're nowhere close to qualifying.

 

[s3lasinc]

@Geppetto Solodogg is 100% correct.

If you go select a car on autotrader, cars.com, cargurus etc, there's a payment calculator that you can change the credit score score range, loan term etc. That should give you a pretty good idea of what your payment and interests rates will be based on your FICO. DCU is offering their 1.49% for tier 1 credit customers which I belive is 730+.

You've got quite a bit of a credit score gap to be considered to be a tier 1 borrower. Either way, good luck on getting to your end goal.

 

[Geppetto]

Thank you very much for your reply. Regarding my lifestyle choices are very good and thank you very much for pointing me on that Obviously, I can afford this purchase and the loan payment, thanks to God I am not an idiot and at my age, I know very well what I can and what I cannot do, but again thank you for your financial coaching.

With reference to the credit score, I'm sorry to contradict you, but I advise you to simulate my situation before stating what you are saying. Try NOT to ask for an increase in the credit line on your credit cards, but the banks give it to you anyway because you have an excellent payment history (always due to lifestyle choices), and try to see if your FICO does not fall by at least 95 points, although you can prove with facts that your spend limit total is 23%. Do this simple exercise and then we'll talk about it, and in any case, it doesn't bother me at all because it just takes time for the various credit score providers to receive the new reports with the adjusted credit limit.

I'm sorry for the long answer but I had only asked for advice and I felt treated like a beggar, so it seemed to be the least to always answer politely.

Thanks
Geppetto

Thank you for your thumbs down @solodogg it means a lot for me.

 

[Geppetto]

Wow, you REALLY need to spend a little bit of time doing some financial research.

I personally request CLI on my all of my credit cards every 3-6 months, or whenever the creditor will allow it. Increases in limits show lower overall utilization percentages, which equates to a HIGHER credit score. Even when paying the bill off in full every single month, your balance is reported to the bureaus and counts towards your availability ratio. You can contradict me all you want, but it's factual that a CLI will NOT negatively impact your credit score, especially into the high 500 range. The only thing that's making your credit score that low are your poor financial decisions, which is further proven by your negative equity trade in you are attempting to finance back into yet another loan. If you are seriously carrying credit card debt at 23% of your actual limit every single month, that's just all the more reason you CANNOT afford a Tesla.

FYI, my credit scores are as follows:
CreditKarma Equifax: 835
Discover TransUnion FICO: 844
Experian: 841

So, if you want to have a discussion about who knows what when it comes to financial questions, feel free to have that discussion. Myself and many others that have worked our asses off for most of our lives to be in the situation we are will still flat out tell you that you cannot afford the car, and you're only going to end up filing bankruptcy (if you haven't already with that score) and causing the rest of us to pay for your debts.

Before coming on here asking for advice and making up a story about your financial situation, maybe spend a few minutes doing some financial research and learning how to better yourself instead of complaining about the situation you have put yourself in.

To answer your original question, you need a 730 credit score to get approval for the lowest interest rate at DCU. You're nowhere close to qualifying.

Thank you @solodogg and I am impressed by your FICO that's means you are in the US for a long time and I am happy to see these values I like the answer you provide at the end of your reply
To answer your original question, you need a 730 credit score to get approval for the lowest interest rate at DCU. You're nowhere close to qualifying.

Basically, this is the only answer I was looking for, now all that said, for sure I can learn a lot from you and the others here in the forum especially for US newcomers who wants to understand how your Credit Score and FICO work. My Credit Score in Canada was 823 but it doesn't mean anything in the US so if you don't treat me as a beggar I am more than happy if you have time to ping me personally and learn how your US system works. But now you open my mind and I have a question: why if my monthly spend on the cards is more or less 23% how comes last month exactly when they increased my credit limit my reported spend was peaked to 138%? Now I don't really understand and I am not blaming you, but I want just to understand the why as you Guys have more experience here. Also, I do apologize if I am off-topic.

 

[Geppetto]

@Geppetto Solodogg is 100% correct.

If you go select a car on autotrader, cars.com, cargurus etc, there's a payment calculator that you can change the credit score score range, loan term etc. That should give you a pretty good idea of what your payment and interests rates will be based on your FICO. DCU is offering their 1.49% for tier 1 credit customers which I belive is 730+.

You've got quite a bit of a credit score gap to be considered to be a tier 1 borrower. Either way, good luck on getting to your end goal.

Thank you @s3lasinc appreciated your answer and help to understand I still have a lot of questions about this situation and now you Guys open my mind and that's why I have a lot of questions like:

1. Why last year when my company relocated me here from Canada, I went to an auto dealer without a credit score history here in the US and financed me a used car (that's why I have negative equity) with a high percentage in the loan after my $13000 cash?
2. Why I am not able to negotiate a better interest tax with the same company at point 1?
3. Buy the Tesla is not a big deal I can get it without any bankruptcy at all soon or late - worst case scenario I can buy it cash, but I don't know anyone in my network who bought a car cash
4. I have the concern to make miles in my actual SUV before trade-in decreasing the trade-in value

I am so sorry again if I am off-topic but I am still learning

 

[solodogg]

@Geppetto if you can buy with cash, why do you carry credit card debt each month? Likewise, why only $4k down if you can afford to purchase the car with cash? With a 598 credit score, any financing you are going to obtain is going to be at least 7% interest, which unless you can invest and get lucky on a single stock choice you're not going to match by holding onto the cash.

Regarding credit differences between the US and Canada, there are practically none aside from Canada maxing out at 900 vs US at 850. As I stated before, increasing your credit limit on a card will NEVER cause your credit score to drop. If the 23% and 138% numbers you are talking about are monthly spend numbers and not overall utilization numbers, then that would also indicate to me that you are spending well above your means which is why your credit score is so low. Your overall spend nor credit utilization numbers will increase due to a credit limit increase, that's just not possible in any way.

Regarding the negative equity, we are in a sellers market for sure right now. If you have negative equity, it is a result of a poor financial decision and not the fault of anyone else. High interest rate loans would not make sense to take out for someone that claims to have the cash to make the purchase now. If you put $13k down on that vehicle and you are still upside down in it, you REALLY made a bad decision in a vehicle purchase.

As far as negotiating interest rates, your credit worthiness doesn't allow for it. People over 800 with no negative remarks on their record can negotiate rates with financial institutions, but at a 598 you'd be lucky to get a loan in the first place. You can try all you want to get a better rate, but let me be the first to tell you that you'll be denied. Credit scores are earned and are based on your worthiness to repay debt, your low score indicates that the credit bureaus have little faith that you will repay your debts.

If you truly want to learn, as I stated before spend a bit of time online learning finances before purchasing another car. You're obviously going to do whatever you want to do, but without knowing anything else about you I can tell you 100% for sure that you're not in a financial position to be spending that kind of money on any vehicle. You need to eliminate debt, carry no balances from month to month on credit cards, and show the lenders that you are responsible before anyone will give you a good rate on a loan that makes it worth holding said loan.

 

[Geppetto]

@Geppetto if you can buy with cash, why do you carry credit card debt each month? Likewise, why only $4k down if you can afford to purchase the car with cash? With a 598 credit score, any financing you are going to obtain is going to be at least 7% interest, which unless you can invest and get lucky on a single stock choice you're not going to match by holding onto the cash.

Regarding credit differences between the US and Canada, there are practically none aside from Canada maxing out at 900 vs US at 850. As I stated before, increasing your credit limit on a card will NEVER cause your credit score to drop. If the 23% and 138% numbers you are talking about are monthly spend numbers and not overall utilization numbers, then that would also indicate to me that you are spending well above your means which is why your credit score is so low. Your overall spend nor credit utilization numbers will increase due to a credit limit increase, that's just not possible in any way.

Regarding the negative equity, we are in a sellers market for sure right now. If you have negative equity, it is a result of a poor financial decision and not the fault of anyone else. High interest rate loans would not make sense to take out for someone that claims to have the cash to make the purchase now. If you put $13k down on that vehicle and you are still upside down in it, you REALLY made a bad decision in a vehicle purchase.

As far as negotiating interest rates, your credit worthiness doesn't allow for it. People over 800 with no negative remarks on their record can negotiate rates with financial institutions, but at a 598 you'd be lucky to get a loan in the first place. You can try all you want to get a better rate, but let me be the first to tell you that you'll be denied. Credit scores are earned and are based on your worthiness to repay debt, your low score indicates that the credit bureaus have little faith that you will repay your debts.

If you truly want to learn, as I stated before spend a bit of time online learning finances before purchasing another car. You're obviously going to do whatever you want to do, but without knowing anything else about you I can tell you 100% for sure that you're not in a financial position to be spending that kind of money on any vehicle. You need to eliminate debt, carry no balances from month to month on credit cards, and show the lenders that you are responsible before anyone will give you a good rate on a loan that makes it worth holding said loan.

@solodogg I really appreciate the time you are spending with me, but again, please treat the people with respect because I am able and smart enough to read your messages between the lines. I am not blaming someone else I'm just doing a real examination of the facts, but unfortunately, there is no worse deaf than the one who does not want to hear. So let me respond in order:

• I said "worst-case scenario I can buy it cash but I don't know anyone in my network who bought a car cash"
• Regarding credit cards, I am not able to manage them? Probably you are right one card Discover has a credit limit (now) of $1500 (starting from $500 but you know that very well)and I have a balance of $225 dollars according to the finance lessons (I use Credit Karma) 225/1500x100=15% if I am not wrong. Second card GS credit limit (now) $2000 with the balance of $315 315/2000x100=15.75% if I am not wrong the total is 15.45%. I did my homework I ended up with "Use your credit card and do not exceed the 30%" (Credit Karma docet) it was the same in Canada
• Why I am using cards instead of cash? Good question - So why do you have Credit Cards and Debit Cards (my assumption)
• with respect to the $13K, you are absolutely right and it was a bad investment in my long life, but just landed needed a car to move around so I proceeded, it's not struggling me at all but if I was smart enough and the vendor less in the rush to sell anything with 4 wheels probably we were talking something different

So now let me come out with the lessons learned (that's incredible at my age I still learning):

• The credit score or FICO disoriented me and for the fear to be refused by Tesla I searched the alternatives around, and the best one was Credit Unions
• Meanwhile because not too much convinced by the CU history and with your comments, I called the Manager of my Bank Branch and explain to him the situation, I have been told "We are one of the banks used by Tesla for the loans (new), we know you and I know you have your savings here so definitely we have no issues to extend you a loan at 2.99%, please call me or come here when you have the MVPA from Tesla and we arrange everything for you" you can imagine my face and surprise
• I ordered my new Tesla Model 3 paid $250 with my debit card and got an estimated delivery of June 2022...why the delivery time is so long?

Well thank y'll for the help, sorry for my Span/English just a little advice for @solodogg - you look like an expert and thank you for your suggestions, but be careful when you touch the people's sensibility. I don't really care because every insinuation bounces off my armour of indifference, but there are other people who might feel bitter to be treated like beggars, other than that you did a great job of unwittingly answering my questions.
Thanks
Geppetto

 

[Geppetto]

@solodogg I really appreciate the time you are spending with me, but again, please treat the people with respect because I am able and smart enough to read your messages between the lines. I am not blaming someone else I'm just doing a real examination of the facts, but unfortunately, there is no worse deaf than the one who does not want to hear. So let me respond in order:

• I said "worst-case scenario I can buy it cash but I don't know anyone in my network who bought a car cash"
• Regarding credit cards, I am not able to manage them? Probably you are right one card Discover has a credit limit (now) of $1500 (starting from $500 but you know that very well)and I have a balance of $225 dollars according to the finance lessons (I use Credit Karma) 225/1500x100=15% if I am not wrong. Second card GS credit limit (now) $2000 with the balance of $315 315/2000x100=15.75% if I am not wrong the total is 15.45%. I did my homework I ended up with "Use your credit card and do not exceed the 30%" (Credit Karma docet) it was the same in Canada
• Why I am using cards instead of cash? Good question - So why do you have Credit Cards and Debit Cards (my assumption)
• with respect to the $13K, you are absolutely right and it was a bad investment in my long life, but just landed needed a car to move around so I proceeded, it's not struggling me at all but if I was smart enough and the vendor less in the rush to sell anything with 4 wheels probably we were talking something different

So now let me come out with the lessons learned (that's incredible at my age I still learning):

• The credit score or FICO disoriented me and for the fear to be refused by Tesla I searched the alternatives around, and the best one was Credit Unions
• Meanwhile because not too much convinced by the CU history and with your comments, I called the Manager of my Bank Branch and explain to him the situation, I have been told "We are one of the banks used by Tesla for the loans (new), we know you and I know you have your savings here so definitely we have no issues to extend you a loan at 2.99%, please call me or come here when you have the MVPA from Tesla and we arrange everything for you" you can imagine my face and surprise
• I ordered my new Tesla Model 3 paid $250 with my debit card and got an estimated delivery of June 2022...why the delivery time is so long?

Well thank y'll for the help, sorry for my Span/English just a little advice for @solodogg - you look like an expert and thank you for your suggestions, but be careful when you touch the people's sensibility. I don't really care because every insinuation bounces off my armour of indifference, but there are other people who might feel bitter to be treated like beggars, other than that you did a great job of unwittingly answering my questions.
Thanks
Geppetto

** Last Minute ** As I had expected I just received the alert from Experian that my credit score has risen to 673 it is not much like yours but I have recently been here and I do not have much history yet, Transunion and Equifax always mark the old credit score

 

[Mateo83]

Do you need a referral to apply with DCU?