misrepresentation of lease contract

[matt2772]

What is the name of your state? Kentucky
my wife and i went shopping for an suv in dec. '96 and were persuaded to lease a vehicle that we couldn't afford to purchase. We didn't understand at the time the actual meaning of the fine print...even though we asked what everything meant in the contract, it was explained to us to their benefit. After we traded both of our vehicles they made it affordable. They explained to us that we were financing 27,784 on 4 yrs. for 434 a month which was at our limit. They told us the trade in value would be guaranteed at 17,000 in 4 yrs and gave us the impression that the lease concept was more like an extended warranty. I priced the insurance on the suv before I purchased it, but the dealer never informed me that I had to have 100/300/100 coverage. We signed the contract on Sat and when I took the vehicle to the insurance co. on Mon they informed me of this. The coverage was over twice as much and I decided that we could not afford this. I went back to the dealer that day and they told me the finance manager that worked our deal was not there and noone else could help. Since the dealer was 1 1/2 hour drive I could not show up every day and I was informed that we were SOL because we already signed a contract. We tried to reason w/the bank also but they said to go to the dealer. I paid about 12,000 on this contract and almost went bankrupt trying, but I voluntarily returned the vehicle in excellent condition and low miles in the summer of '98. The bank sold that contract to a collection agency in 4/2002 and now they are sending me bills for 8,500 and counting. We almost lost everything because of a "good salesman" and my credit report says we're still losing. If there is anyone who can help me get justice...it would be much appreciated!!! Thank you in advance.

 

[JETX]

You're not going to like this, but it doesn't appear that you were done an 'injustice'.

What specifically do you feel was 'unjust' about the transaction you described. YOU had every right to have an attorney explain the lease to you, you chose not to. You had the right to determine the insurance cost before you signed the lease, and chose not to. You had the right (in fact the OBLIGATION) to FULLY understand the agreement YOU made, and chose not to. Eventually, YOU agreed to a 'voluntary repossession' of the vehicle (apparently). Naturally, you are still responsible for the loss that the lender suffered as a result of your breach.

So, here are the only things you can do:
1) Determine if the amount being claimed is correct. Contact the creditor and get a copy of the account, including all payments, charges, fees, recoverables, etc.
2) Check the validity of the debt. Is the claim being made by the original creditor (FDCPA doesn't apply) or by a bottom-feeding, scum-sucking debt collector (DC)?? If a DC, then have them 'validate' the debt as allowed by the FDCPA (Fair Debt Collection Practices Act). A sample letter can be found at: http://www.creditinfocenter.com/forms/sampleletter9.shtml
3) Verify the expiration of the Statute of Limitations (SOL) on the debt. Since the SOL in KY is 15 years for a written contract, it is obvious that the debt is still enforcable.
4) Once you have confirmed the claim amount and the validity of the debt, you need to make arrangements to pay it. If you don't, the creditor could take you to court and get a judgment. If they do, then the judgment will allow them all kinds of additional enforcement possibilities, including wage and bank garnishments, property seizure, etc.
5) Consider filing for bankruptcy.

Sorry, but those are the hard facts.... you are responsible for your debt.

Finally, if the dealer held a gun to your head to get you to sign the agreement, then you MIGHT have a case to dispute the agreement.