They want to change the Contract!!

[kim_psu]

What is the name of your state?contract originated in md, live in pa.
I bought a new KIA on 4/28/05. Yesterday, the dealer called me and said I needed to get there ASAP to sign new papers as the "bank" needs to "re-work" the loan. (in their favor, of course). When I spoke to the credit manager I worked with at the time of sale, nothing was said about this being "conditional" and I can find nothing on the contract (installment sales contract) that says it is. He says he DID tell me that and thats just the way it is. He said that the bank has the right to pull my credit from all reporting beaures(true) and they decided that I now had to pay higher interest and payments than agreed on at the time of sale and I have to come sign a new contract. The dealer name is listed at the top of the contract under the heading of "creditor-seller". A local attorney says that it sounds to him like a scam and my current contract is valid. They have my trade, I have the new car, have since taking delivery on 4-28-05. Am i in the "right" for them to live up to the current contract at the current terms. I am presently awaiting a call back from a MD attorney, but have not spoken to him yet. The first was a PA attorney.

 

[Txlane57]

Similar situation in Texas

Last week we responded to a " you are pre- approved" letter, to purchase a vehicle. We know that becuase of some previous hicups in our credit we would be looking at high intrest rates and payments and that was ok. We signed a contract, that we could live with, it was approved by everyone including the finance department. We drove the truck home, that same night it was broken into. We immediately contacte the police, dealership and our insurance. Now that they have our truck back at the dealership for repairs, we get a phone call a week later saying that the "bank" wants us to come in an put down more money as a down payment. They have our trade in & now it seems as though the new vehicle is being held for " ransom" as they say the glass that was to have been overnighted still has not arrived. They also are trying to demand we go to a specific vendor for our handicap modifcations which is in complete contradiction of the GM policy as outlined one the corporate website.

We are considering hiring an attorney, any insight ?

 

[jpritchett81]

Last week we responded to a " you are pre- approved" letter, to purchase a vehicle. We know that becuase of some previous hicups in our credit we would be looking at high intrest rates and payments and that was ok. We signed a contract, that we could live with, it was approved by everyone including the finance department. We drove the truck home, that same night it was broken into. We immediately contacte the police, dealership and our insurance. Now that they have our truck back at the dealership for repairs, we get a phone call a week later saying that the "bank" wants us to come in an put down more money as a down payment. They have our trade in & now it seems as though the new vehicle is being held for " ransom" as they say the glass that was to have been overnighted still has not arrived. They also are trying to demand we go to a specific vendor for our handicap modifcations which is in complete contradiction of the GM policy as outlined one the corporate website.

We are considering hiring an attorney, any insight ?

FYI: You need to create your own thread before anyone will answer your question. This is hijacking someone else's thread.

 

[JETX]

Yesterday, the dealer called me and said I needed to get there ASAP to sign new papers as the "bank" needs to "re-work" the loan. (in their favor, of course).

This is a very common scam by unscrupulous dealers.

When I spoke to the credit manager I worked with at the time of sale, nothing was said about this being "conditional" and I can find nothing on the contract (installment sales contract) that says it is. He says he DID tell me that and thats just the way it is.

And of course, he is full of crap. Ask him to SHOW you where the contract is NOT final.... and/or is conditional on financing.

He said that the bank has the right to pull my credit from all reporting beaures(true) and they decided that I now had to pay higher interest and payments than agreed on at the time of sale and I have to come sign a new contract.

Tell him that he should deal with a reputable bank.

The dealer name is listed at the top of the contract under the heading of "creditor-seller". A local attorney says that it sounds to him like a scam and my current contract is valid. They have my trade, I have the new car, have since taking delivery on 4-28-05. Am i in the "right" for them to live up to the current contract at the current terms.

We can't tell i fyou are 'in the right' as we can't review your contract. First, I would do NOTHING until you get a notice in WRITING from the dealership. Second, when you get that notice (you won't!!), take it and your contract to a local (MD) attorney for review.

For more on this scam, go to:
http://www.krohnandmoss.com/fraud/
http://msnbc.msn.com/id/3660557/
http://consumeraffairs.com/news03/auto_fraud.html
http://www.nwcu.com/knowledge_center/Consumer_Help/Avoiding_Fraud__Scams/new_auto_sales_fraud.html