Legal Question in Consumer Law in California

Ouch! Unwittingly signed for rule of 78 auto loan!
I purchased a car from a dealership and they financed me a steep 21% because I lacked credit history. If that isn't bad enough, they signed me up for a Rule Of 78 Loan without me knowing about it! I asked the dealer to describe the loan, and he described it as if it were a simple interest loan! I didn't realize what was happening untill my 4th payment, when I saw how high my payoff amount was. (in 4 months I had already paid about $1300 on a $5800 loan, and my payoff was still $5200) Do I have any legal recourse? Can a dealer describe it one way when it's really another? I feel tricked!

Asked on 1/08/02, 3:51 am

Ken Koury Kenneth P. Koury, Esq.

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Re: Ouch! Unwittingly signed for rule of 78 auto loan!

you can get out of a contract if you can prove fraud but you would have to go to court to do it.

Answered on 1/21/02, 12:33 pm

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