Consumer Protection Law
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Hi, How are you? I signed a paper at a used car dealer. with SSN, address,phone. Sales person told me is for credit check bottom says purchase agreement. Is this a binding sale? I asked for a copy and they did not give it to me.
I also tested driven and gave $500 as deposit. I have the receipt but does not say is for the car. it has the dealer name and address. Also a stock number with last 4 digits of the vin number.
Is this a binding sale? had a flat tire during the test drive and i paid to fix it.
I do not have the possession of the car.
The dealer wants me to pay $3000 in cash only before they will offer me to have the loan terms. They said bank wants to see the money before it can find out the loan terms. It has not happened yet.
I want to back out and get the $500 deposit back. can i do it? what can they do to me? they have my SSN,Birth date,address,phone number.
Thanks in advance
Hi, Ray, My name is XXXXX XXXXX I will be assisting you. If I have not Answered your question, please let me know and I will be glad to explain further,
Please number your answers to correspond with the questions, Thank you,
1. When you saw that this was a purchase agreement, did you tell the car salesman that you were not ready to sign a purchase agreement yet ?
2. Did you ask the salesman to tear up the agreement ?
3. What reason did the salesman have for not giving you a copy of what you signed ?
Thank you for getting back to me.
1. They did not say was a purchase agreement. They asked me to fill out form with my name,SSN,address,phone number. At the bottom, I only filled out Car make, model, sale price $16995 then they told I don't have to fill the vin. since this information is used for checking my credit and what loan terms they can offer me since I told them I could not afford large monthly payments. Then, I remember seeing purchase agreement at the bottom. Have not bought a car from a dealer for a long time. Don't think it was a sale agreement when signing.
2. I did not ask them to tear the agreement. I asked for a copy but they did not give it to me.
3. No reason mentioned. I thought it was for credit check and to get loan terms. I did mention wanting to know what monthly payments going to be. Then, they said put deposit and bring $3000 cash so that the loan officer will see I am sincere to get the loan then only the loan officer will find out the loan term once they have the $3000 cash when I come back again on Monday. They asked for a deposit and I gave $500.
Thank you for your additional information, Ray,
It is clear that the car dealer engaged in deceptive business practices by not telling you that this was an Agreement of Sale, by refusing to give you a copy, and by lying to you about the reason you had to bring in an additional $3,000. Loan officers do not need additional funds from the purchaser in order to process a loan application. The loan officer was working together with the dealer to get as much money out of you as possible so that they could compel you to go through with the sale.
You must sent written notice to the car dealer that he deceived you into believing that you were signing a loan application just to see the amount of loan you could qualify for. That the dealer was engaged in deceptive and fraudulent business practices is confirmed by the fact that he refused to give you a copy of what you signed. Furthermore, inform the dealer (in the letter) that you do not intend to purchase any vehicle from him and demand the return of your $500 deposit in full within five days of the date of your letter. And, if the dealer fails to return your deposit in full within that time period, you will file a formal Complaint with the New York State Attorney General's Office and ask that his license to do business be revoked; and that you will also report him to the following governmental agencies and also request of them that they revoke his license:
Federal Trade Commission - www.ftc.gov This is the Federal consumer "watchdog" and they have the power and authority to investigate and prosecute businesses which engage in deceptive business practices;
New York State Attorney General - http://www.ag.ny.gov/
New York City Department of Consumer Affairs - http://home.nyc.gov/html/dca/html/resources/resources.shtml
If the dealer does not refund your money within 5 days, do not waste any of your time trying to talk to the dealer again. Simply, go straight to the above agencies and file a formal Complaint and let them handle it for you,
Please be kind enough to rate Excellent Service" so that I receive credit for assisting you, it will not cost you anything additional to give me a positive rating, and that is the only way I can receive credit, Thank you for understanding,
Bonus and Positive Feedback on survey is very much appreciated,
Thank you so much for the valuable advices.
After i went home thinking all over the scenarios; i felt being deceived by the salesperson who told me to provide my information on the paper and signed so that I would have my loan terms available. Then, they demanded $3000 cash only to the loan officer on Monday.
I will send a letter to them to demand my $500 refund and file a complaint if they refuse to refund as this is a deceiving sale practice.
Much appreciated Andrea
Thank you, XXXXX XXXXX the Excellent Service rating, I appreciate it greatly, If you have any questions in the future, plase feel free to ask for me by typing my name at the beginning of your question, like this,
"For Andrea only ........... "
Thank you for allowing me to assist you,
You indeed provide excellent advices. Many thanks.
One last question please, is it better to have a lawyer to write the letter on behalf of me? So that they see i have lawyer representing me that i took it very seriously?
Thank you again for the compliment, Ray,
I believe it is always a good idea to have a lawyer write the letter, it shows that you mean business and to prove it, you already have a lawyer. This way the dealer will not even think about giving you a bunch of double talk,
Please let me know how the dealer reacts to this. Hopefully, he will think twice before he tries this on another unsuspecting customer,
Thanks a million Andrea.
You help me a lot in steering me in the right direction. I will certainly keep you posted.
Have a wonderful day!
You have a great day also, Ray,
Yes, please let me know what the dealer says and if he attempts to give you any trouble. Just do not let him or the loan officer intimidate you or try to scare you by saying you are obligated to buy the vehicle, because under your circumstances, you are not obligated to do anything,
I will be fighting for the right thing not backing off from deceptive practices. I learned it is illegal for them to say the price ($16995) is only good for financing with them only. They also said it would be higher price if not financing with them. It is illegal practices.
This dealer needs to be taught a lesson and I believe that you are just the person to teach him a lesson he will never forget!
I will let you know what happen.
Great, I wish you the best of luck!
ps No need to respond to this note. I only have two buttons on my side of the screen - An Information Request and an Answer button and since I am not giving you an Answer, I must use the Information Reqest button to send you my message, even though I am not requesting any further information, :)
You are very welcome, Ray,
one last question, they told me on Saturday to bring $3000 today in order for them to find out the loan terms. Should i call to cancel today? Or Just have a lawyer to write the letter which might take sometimes (1-2 days to write and a week to get there).
Thanks so much Andrea.
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