Car Dealership Dishonest Loan Application Tactics, Can I Report This?

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When contacting a car dealership for the first time, the individual may face illegal practices and unethical methods that attract and engage the person into buying or leasing a car. However, it is often that these processes cause the new owner financial difficulty when he or she cannot make the payments each month based on false wage details.

Dealerships use several different tactics to attempt to attract new customers to the store. These are to entice, bring attention and attract based on the benefits of owning a new car or used vehicle. However, many of these methods are illegal and could harm the credit and financial outlook of the individual. Some dealerships offer smaller payments, but the vehicles riddled with problems are not the best purchase. Some add thousands to the total payment under deceptive processes. The owner of the company may even have each employee run a credit check only to pad the numbers with financers and banks for loans with the leasing options.

The Loan Applications

Bloomberg says that one percent of all loan applications for leases on new and used vehicles have deceptive practices attached such as padding wage numbers with the financial backer with the dealership. Unfortunately, for that one percent, these methods could lead to severe problems for the new owners. These individuals may not have the possibility of paying each month for a car that breaks down, needs serious maintenance right out of the dealership and with late payments that increase costs even more. Each person affected in this way may not have the potential to sue the company, but there are some that may seek legal support in these matters.

The Scams

Of the small number of affected individuals from a dealership engaging in illegal practices, it is the scam that is most harmful to the new owner of a vehicle. The primary cause of financial difficulty is the falsification of applications details on a loan document. These pieces of information are generally placed within the computer and sent to a financial backer that is in touch with the dealership. The agent connected to the potential owner is the person that puts in false numbers. He or she may do so on his or her own or at the behest of the owner to acquire new clients and customers. However, the significant impact of this scam is the inability to pay the monthly installments to the dealership when the person does not have enough money for the new or used car and all his or her other bills.

Financial problems stem from the loan applications sent to the financier. When the bank or company is unaware that the details are incorrect, there is no help available in most instances through this agency. This could end in repossession of the vehicle with a ding against the owner’s credit and car history. Other negative consequences are possible, but the inability to pay other bills when buying the vehicle is of great concern to the average person. The potential customer generally manually writes in this or her financial details, and the company puts them into the computer often with much larger wage numbers to lead to these negative impacts.

Filing a Claim

While these tactics are not exactly legal, proving the action is more difficult. However, through hiring a lawyer, the individual affected may have the option to sue the company if the new owner faces financial difficulty because of the actions of the dealership. It is important to gather as much evidence in these situations as possible. Taking pictures or keeping a copy of the original loan and financing documents is an important step. If the person has the option, taking pictures of the data on the screen is another essential piece of evidence. However, this may not occur.

The Financial Hardship and Legal Support

Contacting an expert in these matters is crucial for any claim to start. If the person affected is unable to gather evidence, but it does exist, a professional may have the option to acquire it. This is possible through a private investigator or experts in the subject. Once the details shared with a legal representative provide enough information for a claim, it is possible to begin the case. Through enough data and research into the dealership, it is possible to prove a history of similar activity. Provided to the courtroom, the lawyer may inform the judge or jury enough for a detailed deliberation.


Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer.

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