Need help now please!

[karimichelle]

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I live in Virginia. I bought a 2009 Optima Nov. 12 from a Kia dealership in my town. They asked that I pay $1,500 down for a new car worth about $20,000. They said I could pay half on my payday on Dec. 17. Nothing was signed.

A week later, they called and asked me to sign a new contract with a lower interest rate. But I had to put $500 more down. Nothing was signed saying anything about the down payment.

I didn't  hear from them again until today when they left a voicemail saying to call them. I was at work and didn't hear the phone.

 Ten minutes later, they started calling all seven references listed on my application. The finance person told them in person or on voicemail that I owe the dealership $1,250 and if it is not paid today, they will send it to the legal department, take the car and they would call the police and have me arrested for felony unauthorized use.
I went to the dealership and wrote a "hold check" for the $1,250 to be paid next week.
My car is already financed through a bank. I've received all the paperwork and first payment is due Jan. 1. The dealership told me that if the finance company asks, the down payment was paid in full, in cash.
My question is, did the dealership violated any laws regarding fair debt collection? Specifically, the part where they can't threaten to arrest you? Or call your family and friends. Also, since the car is already financed, can the dealership repo it?

[Anonymous]

Those people are references for that reason unfortunately if they cant find you they can track you through them. That was a pretty low move by them to do it that quick though. I would wait a day or two before even thinking about references.

Now as for breaking laws or contractual rules they have done that. They told you to tell the finance company that you paid the down in cash. This is because they lied to them. MOST finance companies require the down payment in hand before the contract is approved. The dealer can let you take the car but when they submit the paperwork on the loan to the finance company there is a down payment spot that has how much you gave the dealership down. If they put that you gave them $1500 down and sent it through and you already got the contract and first payment due notice and havent paid the $1500 the dealership has committed fraud. Trust me I worked at a dealership and my boss got caught in this exact situation. He got in BIG legal trouble and was going to state courts for fraud. I left immediately. The reason being is if you didnt make the payment the dealership cant repo the car because the finance company has already paid the dealership only the finance company can have it repoed. As it stands if you bought it for $20K and the dealer said you put $1500 down that means the finance company gave the dealer $18.5K for the car. So now the dealer is still short $1500 on their part of the $20K car but have no recourse on getting it if papers werent signed. So you could theoretically stick the dealer by not giving them the downpayment if nothing was signed and they couldnt do anything about it WITHOUT going to court. If they go to court then the finance company and the courts will see all the details and it will be discovered that the dealership has lied and committed fraud. So the dealership in your case probably called all those people really quick because they got themselves in quite the pickle. They need your money without problem. But as for unauthorized use they cannot have you arrested as the car belongs to you and the finance company the dealer doesnt have any authority to have you arrested for it.

Hope this helps.

[karimichelle]

Okstatefan ... thank you! The finance manager lady also told all of my references the exact amount of money I owe and that I could be arrested for unauthorized use if she didn't reach me. I am so tempted to file a complaint, but I'd really like to keep my car. I've already paid $750 cash for the downpayment and just sent my first payment to th ebank. And I do intend to pay the rest of what I owe on the down payment. I'm just shocked and embarrassed and kinda sick over how they handled it.

[karimichelle]

Also, my finance contract says the down payment is paid in cash for the total amount I owe. So you're right, they don't want to get caught by the bank.

[Anonymous]

My personal suggestion to you is be honest - you already wrote the check for the down payment so its going to be cashed and they are going to get their money but I think you were treated pretty crappy and definately wouldnt buy another car there. If it were me I would file a complaint with the BBB and after your check clears the bank and the down payment is complete I would call the finance company and ask for someone in either a legal department or dealership complaint department run down the whole scenario to them and offer to fax them copies of the cashed check from the bank showing that it was written and cashed AFTER the delivery of the vehicle and finalization of the contract. I would wait that way all the down payment is paid to the dealer and you have held all ends so it cant come back on you. But once that check is cashed if you follow through and complain to the finance company I would almost guarantee you that they will chastise this dealership and will start monitoring their loans really closely.

After my boss did that the finance company manually reviewed all applications he submitted from there on out, started calling all people who applied and going over their experience at the dealership and terms of the application before approving, and holding his payments a little longer to make sure everything was right. He ended up really paying for that and eventually lost his dealer license because they found out he was fraudulent on over half of all financing applications. I was glad I got out when I did.

Not saying this dealer is like him but they are obvioulsy cutting corners for a buck and if their tactics really made them angry you definately have the upper hand and this is a good way to get them back.

Let me know if you have any more questions about it.

[karimichelle]

That's good advice. This is a big dealership chain in my area, and they're very aggressive when trying to get you to buy. I think they'll tell you anything to get a car out the door.

I don't know if they're like your old boss, but if I can prevent anyone else the treatment I got today, it's worth complaining.

You've made me feel a lot better. Thank you again.

[Anonymous]

Yeah most likely they arent like him but like you said most dealers will do whatever it takes to get you to leave with the car and get them their money. Especially in hard times they are getting aggressive. I hate that we finally found a dealer that we love. They arent pushy and dont cut corners. The said thing is that most dealers are like those and give the industry a bad image. It is extremely hard to find a good dealer IMO. Good Luck with your new car and hope all works well for you.

[Anonymous]

I would not be able to handle this. IMHO I would stick it as hard as I could to this dealer. Not in the way of not holding up your end of the deal. By all means pay the balance like was mentioned earlier. I would make sure as many people know about what they did as possible. No-one should have their references called and put in this position for the dealer's fraudulent practices. Your references are your close family and friends, your business associates in some cases, and this type of activity some-one should pay for and if it was me some-one would be. I'm not saying I would want to be paid, but that dealer's pockets would be lighter.

Sorry for the rant, things like this just really get me steamed.

[Anonymous]

i don't know if i'd want to roll over so quickly.  if i understand correctly they claimed to already have the down payment in cash then they call and harass you.

i'd say their mistake cost them $1250.  if not that at least it cost them a timely payment of $1250

and if not that i'd at least scream in someone's face until they made things right.

[karimichelle]

Thanks for all your supportive responses. I'm going to give them most of the money I owe in cash tomorrow and demand my hold check back. And if they threaten me in any way again, I'm hiring a lawyer.