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Arizona - bank funded loan w/X-ed out arbitration agreement, now wants new contract

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howie_in_az

Junior Member
I recently refinanced my car loan through Wachovia Dealer Services. Upon receiving the new documents, there was a clause for binding arbitration. I didn't agree with it and crossed it out, adding my initials nearby. Upon mailing it in I was soon notified that the loan had funded, given a new account #, etc.

The first payment on the loan was due December 4th. I made this payment on November 15th since I automate things via my bank. Wachovia accepted this payment. On approximately December 3rd I was called by the same lady I refinanced through. She informed me that the loan paperwork must not have anything crossed out. I told her that binding arbitration was anti-consumer, blah blah blah. She was fairly uninformed about things and stammered that I could have a supervisor talk to me if I wanted. I agreed.

Two days later, without a supervisor call, I received paperwork from Wachovia. It was the same paperwork I had signed before, only this time in duplicate. Apparently they want me to agree to this binding arbitration really badly.

Since Wachovia funded the loan and accepted payment on the loan as it stands (sans binding arbitration), am I under any obligation to do this? If I do not agree to resign the paperwork, what can Wachovia do? Can they repossess the car? Would the loan fall back to it's original interest rate? Would they be forced to go with the new paperwork and interest rate?

Thank in advance.
 


JETX

Senior Member
Since Wachovia funded the loan and accepted payment on the loan as it stands (sans binding arbitration), am I under any obligation to do this?
Obligation?? Can't answer without reviewing the full terms of the agreement. However, the question begs to be asked... How much money are you willing to spend to try to defend if they pursue a case against you??

If I do not agree to resign the paperwork, what can Wachovia do?
Lots of possible things.... from nothing at all, to filing a lawsuit to get a court order to force you to sign a new agreement.

Can they repossess the car?
Read the agreement.

Would the loan fall back to it's original interest rate?
Read the agreement.

Would they be forced to go with the new paperwork and interest rate?
Read the agreement.

Thank in advance.[/QUOTE]
 

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