Hi,
I'm having an issue and not sure what to do. I purchase a Vehicle on 10/22/2013. The original financing was done with a 10 day spot delivery. I was contacted by the dealership on the 30th to inform me that the Original Financing Company, Crescent Bank & Trust did approve me but wanted more down. Crescent Bank & Trust did send me a letter in the mail offering me financing but with more down like the Dealership said.
I signed new financing paperwork on 10/31/2013 with Santander Consumer USA. I didn't sign another spot contact at this time nor does the new contract have anything listed in the "Limited Right to Cancel" part of the contract. It's has NA in all portions of the new contract. I asked financing if this was for sure and he said yes, you are approved with Santander. They had also approved me through a Road Loans application I filled out but didn't know it was the same Company at the time.
Santander contacted me on 11/06/2013 to verify my phone number and information. They did contact my Employers as well to verify employment. I hadn't heard back from them so I contacted Santander on 11/12/2013. I was informed that all information had been verified and the loan was just awaiting final approval. I asked about the Title because my Temporary Tags were expiring on 11/20/2013. She said to contact the dealership, that they would provide me with the Title to get my Tags.
I contacted the dealership on 11/13/2013. The informed me on 11/14/2013 "Titling said it will be there in time". Well, it didn't arrive so I contacted them back 11/19/2013 and asked for a new temporary Tag or the Title. The dealership said "We can't but if you go to the BMV they will give you one for $18.00". "There is no issue that we are aware of. All bank requirement's were fulfilled"
I went to the BMV today to get a new Temporary Tag and they said that the dealership is in violation of the law. She said they have 30 day's from the original Bill of Sale to complete the transaction and furnish me with a Title. I informed her that I did sign new financing on 10/31/2013. She said that doesn't matter, they still only have 30 day's from the original Bill of Sale.
She made me fill out a Title Defect Recision Consumer Complaint form at the BMV. She said it was the only way they are allowed to furnish a new Temporary Tag in accordance with Ohio Law. She said it will also be filed with the States Attorney General.
I'm not sure what to do now, I didn't go there to file a complaint only get a new tag as they instructed me to do.
Any advice would be appreciated.
EDIT: BTW, the scores I was given were 572 and 613.
**BUMP**
Anyone?
Since I hadn't had any replies I looked into the law in Ohio. The lady at the BMV was not correct, the dealership has 40 days not 30 to furnish me with the title.
She as well as her supervisor did say I had to fill out the form or they couldn't issue another tag. I wonder why?
4505.181 Obtaining certificate of title prerequisite to offering vehicle for sale
"(1) The dealer fails, on or before the fortieth day following the date of the sale, to obtain a title in the name of the retail purchaser."
Thanks,
It's really getting to be a big headache honestly. The dealership does have in house financing, I wish they would just use their own now and get it over with. I'm not worried about paying to high of an interest rate with them since Santander offered the highest they could...ugh.
I wasn't surprised with the high interest rate, my scores are barley OK and there are several derogs on my report but they are all Medical and I am in a payment plan for them. I have paid off over $2,500 in medical already. The Hospital did agree to a PFD on them that's why I have been working on getting them taken care of.
The Spot Delivery did worry me a little bit. I wasn't aware of what that was until I looked into it once I got home form the Dealership. I was happy when they didn't make me sign another one with the new financing contract.
I found this about Spot Delivery Agreements in Ohio...
Can a bank revoke a loan on a car after I signed the contract?
"...It may be hard to believe, but it is true that car dealers will sometimes deliver a new or used car to you and have no idea of whether or not your loan is really approved or not. They do it because they know that if they can put you in their car, and take you out of your’s, then they take you out of the shopping market and that keeps you from buying somewhere else. They only worry about setting up the financing later. If they can't get a lender, then they may call you back and say they need you to get your own loan at your own bank yourself, or you have to come back to the lot and sign a new contract for one reason or another (such as, you don't qualify with that lender, they want more money down, etc).
In many states, that can be illegal. Look at your sales paperwork for a document that is often called a Spot Delivery Agreement and then check with a local Consumer Law lawyer. A Spot Delivery Agreement is a paper that says what how long the dealer has to set up the loan and what happens if they don't get it done on time. It usually says they have 3 to 30 days (usually on the short side of that total) and that if they can't set up a loan then you have to give them back the car and maybe pay for the mileage you drove on it. Whether or not you get your trade in or down payment back should also be covered. This whole process is called "dehorsing" by the car dealers themselves (you can read a Car Dealer's Slang Dictionary at this web page: http://ohiolemonlaw.com/car-dealer-dictionary.html) and doing it can be a violation of most state Unfair & Deceptive Acts and Practices laws, if you were buying the vehicle for non-business (personal) use. If your amount being financed is less than $50,000 (look at your finance contract's "federal box" where key finance numbers are stated) then it's very likely to also be a violation of the federal Truth In Lending Act too (that’s a federal financing disclosure law that protects consumers).
Some states (like Ohio) also have a law that specifically applies to car dealers doing this sort of thing. If you don't have any spot delivery document in your deal and there is nothing on the finance contract that says it is contingent on financing approval and it says on it that the dealer (by its name) is the "creditor", then your deal may be a final contract and if the dealer can't get a lender to finance the sale for you then legally the dealer is probably stuck having to take your loan payments or accepting your cancellation of the deal, but of course they won't tell you that and they, in fact, will probably say they don't have to let you do it your way at all. You need to talk to a local Consumer Law attorney who deals with this kind of case (it's called "autofraud" or car sales fraud). To learn more about Fraud, read this free online Avvo Legal Guide “What is Fraud?” here: http://www.avvo.com/legal-guides/ugc/what-is-fr.... Call your local attorney's Bar Association or you can go to this web site page for a Free Online 50 State National List of Consumer Law Lawyers (http://www.ohiolemonlaw.com/ocll-site/ocll-loca...) and find one near you..."
Thes second financing contract wasn't signed along with another Spot Delivery Agreement. The first was only for 10 day's.