Avoiding a Yo-yo Financing Scam | Federal Trade Commission

Avoiding a Yo-yo Financing Scam | Federal Trade Commission


[MUSIC PLAYING] Manwell found a car he
liked at a local dealership. The dealer offered
financing, so Manwell submitted an application,
signed some papers, and took the car home. But a few days later, the
finance manager called. Manuel’s financing
wasn’t approved. So he went back
to the dealership. They offered him a different
financing agreement, but this one had a higher rate
and a higher monthly payment. Manwell knew he
couldn’t afford it, but the dealer
started pressuring. Him. If Manwell didn’t sign
the new agreement, the dealer said he would have
to return the car he bought. And the dealer said Manuel
couldn’t get his old car back because it was already for sale. Manwell knew his rights. He didn’t let the
dealer intimidate him. He said he would report the
dealer to the Attorney General if they didn’t make it right. So the dealer
canceled the contract. Manwell returned
the car he bought, and the dealer gave
Manwell his old car back. Now Manwell knows to compare
offers from several lenders. And get his financing
before he goes car shopping. If he chooses the
dealer financing, he also knows to ask
if the deal is final and to get that in writing. [MUSIC PLAYING]

About the Author: Michael Flood

2 Comments

  1. Unfortunately, these problems have become a precedent and slipped into a social norm. It is expected of dealerships and when people hear these frauds, they tend to say, "ehh, sounds about right." Something has to be done to change the social perception and institutionalized acceptance of these criminal actions. I will be pushing my case as hard as I can until I reach the "National Spotlight" allowing society to be educated of their rights and to feed off of the current social atmosphere. I do not personally want to be in the "spotlight", just my case and the multi-billion dollar International Corporation responsible for committing felonies.
    Group1 Automotive owns and operates dealerships, Franchises, and their own collision centers throughout 14 states, UK, and Brazil. I have been in a lawsuit with them for almost 5 years for the following and have the evidence to prove all of it: Contract Fraud, Fraud scamming, Forgeries of Power of Attorneys (3 of them), defrauding the court into "reacquiring" MY legally owned vehicle in which they forged my name on two PoA's to transfer ownership to themselves and again to sell it to someone else, even though it is subject of litigation), sold my trade-in 5 days after the trade without paying it off, cost me 30 days passed due for two months that cost me late fees, penalties, higher interest, and forced placed insurance due to my insurance company refusing to cover it because I no longer owned the vehicle), bank fraud (submitting a loan to the bank without my knowledge or approval/ no contract to do so), computer fraud (using a computer to submit an indirect loan for financial gain), finance fraud (submitting a loan above the vehicles worth to the bank for a higher financial gain and without informing them of severity of hail damage on the vehicle), and Identity Theft for submitting an Indirect Loan in my name.
    Before anyone says anything about signing contracts giving them authority to do so:
    I did NOT sign a Retail Installment and Credit Application. I signed a Purchase Agreement because I was already pre-approved by my bank for the loan on the specific vehicle (in which they messed up on a number line and took my down payment rather than it going to the bank as a down payment to meet the LTV (Loan to Value ratio) on the vehicle AND refused to give me my $2000 down payment.) They said they agreed to the screw up and was going to fix it. They did not, instead came to me on a Sunday to sign a new contract for a new price and higher interest rate, in which I obviously told them, politely, to go F** themselves. Not to mention, selling automobile on a Sun is illegal, in OK it is.
    There is a difference between a Purchase Agreement and a Retail Installment. The Retail Installment is what gives them permission to run your credit and submit loan offers to banks to get you approved. Again, I did not need this because I was pre-approved. I signed a Purchase Agreement that states the trade-in and vehicle being purchased along with the fees, charges, and total amount due to the dealership for the vehicle. This is what is done for people who are already pre-approved for a loan.
    I am currently working on filing RICO against them in OK. Every state has their own RICO Laws. You can file Civil Relief suits under RICO. In OK, it is called the Oklahoma Criminal Organization Prevention Act. You must meet all requirements to use this Law. Statutes and Sections are listed in which is covered under RICO. They must have AT LEAST two (2) statues or more under "Racketeering Activity". Each state and the Federal laws are going to slightly vary. ALWAYS consult a lawyer. I, unfortunately, am looking to replace my lawyer due to not properly representing me which led me to learn law on my own for the last 11 months. I will be going to law school now due to the issues. Always check reviews on Consumer and contract lawyers. YOU can hire and fire lawyers to represent you, it is your Right to do so. Ask questions about EVERYTHING and read your states rules for lawyers: "your state" Rules of Professional Conduct.
    I pray that this comment helps anyone and everyone it may reach. If anyone has questions, comment below and I will respond and answer to the best of my ability. I do check my "alerts" to see if anyone has commented on other posts. Good luck to anyone who is in my position and finds this post.

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