As if it wasn’t bad enough for car dealers to take advantage of new and used car buyers by engaging in price gouging during the pandemic. Making the lives of their customers worse, some dealers and lenders are also illegally repossessing their cars. This is so that they can resell them and do another kill by exploiting someone else.
But the pro-consumer people named by President Biden to head the Consumer Financial Protection Bureau have taken note. They just announced that they are cracking down on illegal car buybacks. Some of the practices they identified are:
- Illegal car parking: Servers are the repossessions of vehicles from borrowers who have made sufficient payments to stop the takeover or who have entered into a repayment plan. Due to the high level of damage caused by wrongful repossession, servants must ensure that each repossession is valid.
- Dirty Record Keeping: Improperly encrypted records or agents’ failure to speak to colleagues about canceling recall orders harms consumers and violates federal law. Servers need to ensure proper communication between themselves and any third party processing the repossession.
- Unreliable balance inquiries: Inaccurate balances can cause the borrower to pay less than an amount sufficient to avoid late payments, leading to ownership reclaim. Their cars are also repossessed because their loan payments are processed in a different order than they were told.
- Ransom of personal property: Servers still hold personal property in recovered vehicles hostage until the property owner pays a fee, a practice the CFPB has been Choking on me . “
What can you do if a dealer or lender takes your car, car, or truck back, and you suspect it’s illegal?
Submit a complaint to the CFPB. Here you can file a complaint: Make a complaint
Get legal advice from a lawyer who specializes in representing victims of automatic fraud. Be sure to ask if they would be willing to represent you on an “emergency” basis, or at no cost to you. Here is a good resource for finding an automatic fraud expert in your state, by contacting National Association of Consumer Advocates.
How can you avoid becoming a victim of wrongful recall?
#1 Join a local credit union and get pre-approved for a loan before shopping for a car. Most credit unions are not as quirky as the big auto lenders tend to be.
If you can put off buying a car, save and pay cash.
Consider buying your car from another consumer, rather than a car dealer. In this way, you can save a lot of US dollars and avoid a lot of trouble, like basically stealing your car and holding your personal belongings hostage.
over here car tips On How to Get a Good Deal on a Nice, Safe, and Reliable Used Car – Telling Tricky Dealers and Lenders “Bye Bye”!!
Popular video about this auto-lending scam: comedian and news commentator John Oliver reveals how auto dealers and lenders are getting involved in the ‘ripple’ Buying expensive cars that often break down soon after you buy them, recover them and resell them over and over again, making a big profit every time. At the expense of honest, hard-working car buyers.