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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Consumer Protection Law
Satisfied Customers: 17174
Experience:  B.A.; M.B.A.; J.D.
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I purchased a 2005 Volvo xc90 from Mikes Auto sales. When I

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I purchased a 2005 Volvo xc90 from Mikes Auto sales. When I financed the car with Lobel financial, I gave a $1,000 in cash and a 2000 S500 Mercedes Benz as down payment. from he onset the vehicle had mechanical issues and spent the first two weeks at the lot for repairs. I picked the car up and it went back in two days with the ABS light on and service light on. I picked the vehicle up and again it had the same issues. I took the car to be repaired 2 more times, and it was not fixed. I took the vehicle to the Volvo dealership in SF to have a diagnostic. After I paid the $300 for the inspection, I took the report and the car to Mike Auto sales for it to be repaired. I stayed in close contact with Lobel financial every couple of days during this period reporting to them that I was sold a Lemon and that the dealer is not repairing the car. I received a call from Mike at the dealership stating that the bank is not going to fund the Loan and he has to pay them for the vehicle. I called Lobel Financial everyday for the past two weeks to find out whether I was still responsible for the Loan and if I should make June's payment. The reps at the bank kept telling me the bank is not who I contact it is the Car Dealer issue. I was told not to pay June payment and that the loan will be deleted from my credit when the Dealership pays the Bank for the Loan. I called the Bank on Thursday and was told the car is in Repo status and it will be on my credit. I would prefer to bring the Loan current and fix the Lemon myself than to have a repo pon my credit.
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Customer: replied 3 years ago.
I need assistance tryin to get the bank to allow me to get the car back form te dealer I am tryin to avoid a repossession on my credit.
Customer: replied 3 years ago.
I want to know if I have a legal case against the bank an car lot.

Thank you for the information:

I want to know if I have a legal case against the bank an car lot.

Response: Yes, you do have a case against the bank and the car lot and you can sue both at the same time and let them fight among themselves who is ultimately responsible to you. The car lot is more culpable however because it was the one that sold you the lemon. It was the one that told you that the bank would not fund the loan. It was the car lot that told you that would make the payment on the car and failed to make the payment. On the bank's side, you kept the bank informed of your problems with the car. The bank told you not to worry about the payment and then later told you that the non-payment/repossession would appear in your credit. You relied on the bank's assurance to your detriment.

You need to make a formal demand for the car lot to make the payment as promised. Otherwise, you would file a lawsuit against the car lot for unfair and deceptive act and practice for selling you the lemon car and for promising to make the payment on your car and then failing to make the payment, which then resulted in the non-payment appearing on your credit file.

As for the bank, you would ask that it remove the derogatory information from your credit file because you did what you were asked to do: not to make any payment because the car is a lemon. If the bank refuses to take the derogatory information off your credit record, then you can dispute the information with the credit reporting bureaus. Pursuant to Fair Credit Reporting Act, the credit reporting bureaus have up to 45 days to investigate your dispute and get back to you. As part of the inquiry, the credit reporting bureaus would send the information for verification to the bank. If the bank verifies the information, the derogatory information stays on your record. You would then be given an opportunity to put a statement on your file disputing the information or you may file lawsuit against the lender to force the lender to remove the derogatory information from your credit file. On the other hand, if the bank does not respond, the credit reporting bureaus would resolve the dispute in your favor by deleting the derogatory information from your credit file.

You can use the following sites to find local consumer Attorneys that can handle the case for you.

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