Q: Regulations against banks refusing loans, but forcing people to use credit cards at higher APR. Consumer protection?
My bank has refused car loans and then refused a lower motorcycle loan, so I could have transportation after lease end. The amounts were $12,500 & $11,164 - then 3rd app was for $8,500.
All refused due to "too many inquiries. While that bank was the only inquiry on the credit reports. (only 3 inquiries at the time).
Those previous inquiries were from applications of Credit cards, with higher spending limits, $8,000 each. So I have $16,000 worth of spending limits on credit cards at 16.9% interest.
Yet the same bank refuses to allow me to speak to underwriting to get approved for $8,500 with 4.2%.
Credit is fine, sitting at 722.
Are there any regulations that I can cite in relation to consumer protection/banking on this specific issue. Any help would be appreciated. I'm going to be filing a State complaint against the bank for this, because I lost about $5,000 in the car asset equity from the inability to purchase the lease.
A: No. American banks can refuse loan applications for any financial reason--whether you think it is the right decision or not. Learn this lesson right now:
ALL banks are ALWAYS looking out for THEMSELVES first, not for their customers. Banks do not care about you, nor do they want your business--unless you have two or three times as much cash sitting in one of their bank's pitiful 5 year CDs--earning hapless customers something like .2% right now.
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