@DM0125 wrote:
My credit is not good and while I understand financing has its price, I went to the car dealer and they got me approved. However the monthly price was astronomical. They gave me a 16.78% APR which I took and understand its the way it is for my credit. HOWEVER, when I calculate the monthly payment I am coming in about 150 less than what they quoted. I asked about this and was told that the bank is charging the dealer a fee for financing me because I am risky so they are adding that to the price of the car. I thought this was illegal for dealers to pass the acquisition fee onto the consumer? I am not trying to get a better interest rate or anything, I just want to pay the price we agreed on. From my research on the FTC website, the reason dealers charge subprime borrowers high interest rates is to recoup the acquisition fee that they are charged by the banks. So am I being charged twice for the same fee?
You need to clarify things here.
A there is no way a bank fee is $150 a MONTH ($1,800 yr or $9,000 over a five year loan)
Usually a bank fee is $300-$800 charged at loan inception and possibly charged directly to the customer or not depending on the deal, and agreements with the individual bank.
I have no idea why it is "illegal" to charge a customer for a fee that they are incurring on the deal, maybe you have a state law that may come into play.
All in all: I think you are missunderstanding some aspect of your transaction.
Also can you provide a link to where you find this illegal per FTC guidelines.
