When you place a credit application at a dealer's place of business, he can use it any way he wishes. He can get your credit report for himself, or shop your loan to other banks where he makes a kickback (known as dealer reserve) as well as contact your bank.
Most custormers do not mind this practice as it regularly puts many lenders in the game for your loan and usually gets a better rate than simply going with your favored institution. If going with a certain bank is your desire, start the process at that bank and get "Pre approved." Then you will have no reason to give a dealer a credit app. You can concentrate on getting the best price for the vehicle! I hope this helped you.
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