Legal Question in Banking Law in Utah

Auto Loan Interest rate
This is slightly complicated but bear with me. I have an existing auto loan with a lousy interest rate-I applied for a new one and was approved for an interest rate of 5%. However, the maximum they would lend me is 110% of my car's value. My car's value was lower than expected but because it is a relatively new car, the loan officer told me they could use my car's base purchase price as a value.

I found my car's purchase contract and supplied the base purchase price. 110% of that value put me within close distance of my loan payoff. The loan officer told me that if I paid down my pre-existing loan balance, we could do it. I agreed and spent $700 to pay down my pre-existing loan balance. The loan officer left me a voice mail telling me I was approved, quoting me my loan amount, and telling me my interest rate was 5%. I just had to come into a bank branch and sign the papers.

When I got to a branch to sign, they re-calculated my car's value at retail book instead of the purchase price and told me my loan to value ratio was now 137% and my interest rate would be 8%. I told that that was unacceptable but they told me the loan officer must have made a mistake.

Do I have a case to get my 5% rate or my $700 back?

Asked on 9/05/08, 12:22 am

Alvin Lundgren Alvin R. Lundgren, L.C.

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0 attorneys agreed

Re: Auto Loan Interest rate

You do not have a case.

Answered on 9/05/08, 11:09 am

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