Car Refinanced (w/out our knowledge)

[kwhaley]

What is the name of your state? NC

Not sure if this is the right place for this post....

We bought a car last April ($700 down payment), it was on the lot financing. Made the payment in May, that month we got a letter from the dealer saying that he had sold the contract to a finance company (His brothers business). So we've been making the payments to his brother.

My husband called today and asked him how much we still owe on it and after he told him, husband asked why so much. He said that when he bought the contract from his brother, he refinanced the vehicle, and charged us for the refinancing, so we basically had to start all over. We lost almost a $1000 that was paid to the car lot, because of the refinancing. We never received a new contract, a notice about the refinancing, nothing except to make the payments to the new place.

Can they do this?

 

[justalayman]

If all is as presented**************no unless your contract allows this.

generally a creditor can sell their loans to another but they cannot change the terms to you unless there is something in your contract that allows this.

read your contract. that is where the info you need is.

 

[dallas702]

If this is legal I'm gonna get out of real estate and start doing car loans. What a gold mine...sell the contract to my "other" company (pick your number) every 6 months, rake in all kinds of extra fees and new interest charges.

Yeah, you'd better go back and read all that fine print. If you find it, show us the clause that he's using to get away with this bit of thievery.

 

[JETX]

Can they do this?

To reconfirm the other responses...
It is very common to include a provision that the note can be sold to others. This in itself should not be a problem.

However, their unilateral decision to change the terms of the loan is NOT legal. I strongly suggest you contact a local attorney to review your agreement.... and to contact the 'lender' to correct their 'error'.

 

[kwhaley]

Thanks for the advice. I'm following up on it!

 

[Trucking Mad]

Pass it on!

Thanks for the advice. I'm following up on it!

You should pass on the name of this CHARLATAN for others to beware... What a scam... I wonder how many others have fallen prey to this theivery... My goodness this kind of cra* just pis*** me off!

 

[Just Blue]

Thanks for the advice. I'm following up on it!

Please come back and let us know what happens!!