That sounds extremely bogus. Even in Cali, I can't see there being a law requiring a credit app be filled out. Your credit rating and history is none of their d*** business. If you lay the money on the table, that should be their only concern.
They're trying to pad their numbers.
If you really want to play hardball, I'd find out if their statement is true or not about being required to fill out an application. If it's not, I'd call them out on it.
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