Certain businesses that tend to deal with Credit and Loan applications through regular business, such as mortgage brokers or car dealerships, may knowingly insert or alter information on credit applications. Always double check and verify the accuracy of anything you are signing.
If you have any reason to suspect the accuracy of the information supplied to a financial institution through a third party, ask the financial institution for a copy of the information submitted in your name and confirm the request in writing. If it turns out that the copy that the financial institution has is not identical to what you believe you submitted, notify the institution immediately, in writing, of the discrepancy.
Also, be aware if you fill out a credit application in handwriting and are then asked to sign what is represented to be a typed version of the same application.
Compare the documents carefully.
If false, erroneous, or misleading information is submitted on your behalf, it is usually because the truth would result in your not obtaining the credit applied for or because the transaction is predatory and likely not in your best interest. Many lenders, such as banks, are required by law to comply with “safety and soundness” standards, including a requirement that they only extend credit that they expect you to be able to repay without default. These standards protect both the public, which insures banks against failure because of excessive loan losses, and you, the consumer. The submission of false information by dealers and brokers is an attempt to circumvent these standards and is never ok.
Contact us any time for a free consultation if you have any questions or would like more information.
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