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Steinlaw, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 1811
Experience:  Consumer law attorney, author of California Debt Blog, top foreclosure attorney
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I signed for a car loan for my son. On 4 different occasions

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I signed for a car loan for my son. On 4 different occasions the Bank added forced place insurance on the loan when they said he did not provide proof of insurance. The 4 times totaled over $8000. Because of this, the payments at the end of the loan ballooned and we could not pay it. They repossessed the car, sold it and have filed a lawsuit against us for the balance they say is owed. My question is: I finally, after numerous attempts, got a printout from the bank on the loan activity. I discovered that when they charged us a huge amount for the insurance they received a 57% rebate each time. I need to know if this is allowed. I read on the internet that the rebate could be considered a commission on the insurance and that is not allowed. But how do I prove it? Also, 2 of the times they put the insurance on, my son did have insurance. When he sent them the proof, they did not refund the whole amount. Florida Statute 655.946 says it should all be all refunded.
I am sorry you are going through this.

1. This does sound like a commission. First, file a complaint with the Dept of Insurance. Second, subpoena the records from the insurance company as well as the lender. That should get them to back off.

2. If your son sent them proof of insurance, they should have removed the full charge. Their failure to do so is a failure to mitigate their damages.

Finally, you should talk to a consumer law attorney about a possible cross complaint for debt collection violations and wrongful repo.

Good luck.
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