retail sale agreement

[thongyoi]

On Oct. 27, 2000, I bought a car in NJ and found out later in the contract that I had been charged for GAP which I didn't need it. I went back and asked them what is this and I want to cancle this GAP. They said it will take 4 to6 weeks for the progress, and after the progress done they will credit through my account in which they had me finance through them. The thing is I went to get another loan and want to pay off that loan. They said that if I do pay before the process is done I will lost my $800 for the GAP. Can they do that? Can they just give me my money back to me w/o through the bank? It's look to me that they just tried to keep it. I will be thankful for all your help.
Another thing is that I talked to the finance dealer that if I want to pay off the loan how much do I need to pay? He said if I was going to pay before the first payment I will only have to pay the amount that I loan for which is 23618.89, but when I called the bank she said that will be 23927.03 already. I called the dealer again and he said that he called the bank and asked them for me. He still said that the only amount I need to pay is 23618.89. Still the bank said no.
On the contract, said: PREPAYMENT: I can prepay the amount I owe you under this Agreement at any time. If I do, you will credit to me the unearned Finance Charge according to a commonly used calculation known as the acruarial method. That was the dealer tried to pinpoint to me that if I choose to pay the loan before the first payment I will have to pay only the amount that I finance. Can you help me with this? What all these mean?

Thank you,
Thongyoi

[Edited by thongyoi on 11-22-2000 at 09:47 AM]

 

[lawrat]

I am a law school graduate. What I offer is mere information, not to be construed as forming an attorney client relationship.

Finance charges accrue daily. You need to speak with a supervisor at the bank to ensure that the amount they told you was the wrong amount.

If you have no prepay penalty, you should be credited for the unearned finance charges.

As to the GAP, it shouldn't matter when you pay for the car. Your refund should not be affected. Sounds like someone is just too lazy to do the math.

Ask them to give you a check for that amount or else you will contact the better business bureau and charge them with fraud (a charge for GAP you don't need). And next time, please don't use names on this board.

 

[thongyoi]

I took out the name. Sorry about that, I didn't know.
Anyway, I talked to the bank and she said that the interest was accrued at the first day of the agreement which is seem o.k for me. The thing is how the bank charged you interest for the whole month not by the date you pay off, if you know what I mean. Is that right? So if I was going to pay on the 1st or the 30th I still pay for the same interest.
Also, about the dealer that they misrepresent me for the amount I need to pay off which is $23618.89. I called and went there more than 10 times to ask them about it and they still saying the samething. Until I got them to talk to the bank yesterday. They turned to me and said that because I didn't want to pay for the interest. I told them that not the point. The point is I need to pay off and didn't know what's I need to pay. And he told me I cant' pay off until the cancle of the GAP is process which take about 4 -6 weeks. That caused me to wait until now. At first, when I talk to him; he said that the company will credit any amount of interest accrue during my waiting time. But when I asked him to write it down he wouldn't. Now I know that they will not do it. But anyway my question is: Can I get anything from them being misrepresent? I only need them to paid the finance charge that cause by them.
Thank you very much