As we mentioned in a previous blog post, many consumers who have a pre-approval from their preferred lender complain that they are being forced into financing their new vehicle purchase at the dealership. We know that the nationwide shortage of vehicles is causing dealerships to do everything they can to get your business and while this is not necessarily illegal, it is concerning.

Several months ago, the Office of Consumer Credit Commissioner (OCCC), said “we are concerned” and have been accepting complaints from consumers. Complaints range from:

“…would not accept my pre-approved financing…”

“…would not allow me to use my credit union check. Wanted me to use in-house finance…”

“We were forced to use their financing at 7% interest…”.

These complaints have prompted the OCCC to investigate; however, not surprisingly, dealerships are denying the claims.

How can I avoid being forced into dealer financing?

1. We still recommend getting pre-approved for your auto loan through Members Trust. This gives you buying/negotiating power.
2. Start your search online and communicate directly with one of our preferred dealers with our free Auto Buying Tool.
3. Conduct your negotiations via email BEFORE you visit the dealership, so you have documentation in writing that they will accept your Members Trust financing.
4. Be firm with the dealer and let them know you are already pre-approved through Members Trust and that’s how you want to finance the vehicle.
5. Easier said than done but think of it as a business deal otherwise the dealer may get the best of you. Be willing to walk away if they deny your request. You may miss out on that specific vehicle, but you will avoid additional expenses.
6. Or, take the dealer financing and come back to Members Trust to refinance. You do NOT have to wait 90 days to refinance. Dealers tell consumers they have to wait because that’s when they get to keep their sales commission!
7. If you do take the dealer financing, pay attention to the fine print and all the extra add-ons. Consider purchasing GAP and your extended warranty through Members Trust to save money.

How can I file a complaint?

If you’ve visited a dealership and they deny your request to finance your vehicle through Members Trust, we encourage you to file a complaint with OCCC. Get the denial in writing either via email or text that they reject outside financing.

You can contact the OCCC’s Consumer Assistance staff:

• (800) 538-1579
• complaints@occc.texas.gov
• Website

It’s important for you to have control over the way you want to finance your vehicle – for your life and your financial situation – whether it’s through us, paying cash, or financing through the dealership. Requiring you to take dealer financing when it might not be financially beneficial to you is not something we advocate.

Reach out to us online, give us a call at 800-683-6455, or stop by a branch if you have questions about forced dealer financing and see how we can help in your situation.