Legal Question in Consumer Law in New Jersey

I was purchasing a car from a Car dealer, and prior to the approval of financing, I was allowed to take the car on what is called a "Spot Dlivery".

I gave a $2500 deposit on my debit card towards the purchase price.

After three weeks of having the car, I was informed that the financing had not been approved, and the car was to be returned.

I returned the car on 10/30/2010, but was told that they did not have the release form for me to sign in order for them to credit the $2500 deposit back to my debit card, and I was asked to return on Monday 11/1/2010 so that they could have the proper forms ready for me to sign, and at that time I would be able to get my deposit back.

I was unable to get transportation on 11/1/2010, I called and informed them of that, and was told that I could come the following day, which I did.

They did not have the proper release form for the $2500 deposit, but amazingly enough, they had a $50.00 check for my troubles (whick I never asked for), along with a release form that only stated my acceptance of the $50.00 check, along with legal mumbo jumbo basically saying that with this release I can not take any further action against them. I was told that the $2500 deposit should be credited back to my bank account after midnight, or on the following day. I told them that I would rather not sign anything at that time and that I would not accept the $50 check as well, and that I would wait until I see the full $2500 credit in my account, and when that took place, that I would return to the Dealership and sign the proper release form.

I know I wrote a book here, and I apologize for that, but I am under the impression that I am being swindled out of my deposit, and that this is a scam. I realize that they are trying to making me feel as though they are giving me something extra with the $50, but once I sign the release, I will never see the other $2450 again.

I read many complaints online this evening (after the fact) about this company doing this to other people as well, along with a laundry list of additional complaints.

The BBB inernet sitereports that they have had 46 complaints in the past 36 months, and that their A-F rating from the BBB is an (F).

I need some serious legal assistance if possibe.

Sincerely,

Mark Feldman

(856)258 - 6502


Asked on 11/02/10, 10:22 pm

1 Answer from Attorneys
John Corbett Corbett Law Firm LLC

I believe that your intuition is good. The practice of delivering a vehicle and later claiming that the financing could not be approved is a form of bait and switch. It is often made worse by the fact that some dealers will take a car in trade and then have "sold" it by the time that the customer realizes the problem and wants out of the deal. The bad news is that you may have to sue in order to get the $2500 back. The good news is that NJ has a strong consumer fraud statute that can be used to help. Meanwhile, the only release that you should sign without the assistance of counsel is a receipt for the $2500 if they give it to you. The dealer is not entitled to a release of liability for simply giving back your money. Under some circumstances, that might be the best way out but it is not necessarily so. /p/ See also: http://info.corbettlaw.net/lawguru.htm

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Answered on 11/08/10, 6:27 am


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