Legal Question in Consumer Law in Kansas

I just purchased a car. My plan was to pay for the car outright and then have my bank reimburse me with a loan. The dealer said they could beat my banks percentage rate. They ran the credit check, which is high, and came back with a really low rate... in fact, so low I began to wonder... I signed all the papers and the RISC, which included the interest rate, and all the financial information. I then drove home. The next morning the financial guy called me to come back in. He said he was working on my loan, and needed me to come back in and sign a hail damage waiver, which I had already signed earlier. I made plans to go in that evening.

I then began researching online, and came across all this information on yo-yo sales. I read that "Under the MVISCA (and the Motor Vehicle Sales Finance Act18), all agreements between the customer and car dealership have to be included in one installment contract."

Along with the RISC, I was given to sign a paper titled "Universal Acknowledgements", which says, "I understand and agree that my purchase of this vehicle from this Dealer is conditioned upon the approval of my creditworthiness and the financial terms that conform to the Retail Buyer's Order." It also says, "Additionally, I agree to furnish Dealer any additional information required by the lender to process this transaction within 24 hours of dealers request. I also agree to promptly return to the Dealership to sign any additional paperwork required by the Dealer or lender to finalize this transaction. If an error or omission is discovered by the Dealer on any of the documents I agree to fully comply with all requests made by the Dealer within 24 hours of Dealer's request.

If I understand correctly, according to the MVSCIA, I am only bound by the RISC and the additional paperwork, including the "Universal Acknowledgements" is nul.

Which means I do not have to drive an hour every time someone sneezes at the dealership.

Is that correct, and does this law apply to Kansas?

Also, are both the Dealer and I, bound by what is on the RISC, and the dealer must honor the percentage rate and the figures listed on the RISC, no matter the bank's situation?

After all, the dealer is the creditor...


Asked on 4/11/13, 10:25 pm

1 Answer from Attorneys
Anthony Smith LawSmith

You may be correct. But, as you said, you signed the Universal Acknowledgments, as part of your original package of loan documents. Therefore, you may have waived some of your protections. Since you have the vehicle, you should require that they mail you any additional documents they want you to sign, prior to "going back to the dealership." Then, have your attorney examine those documents, and advise you on their effect.

Good luck

Read more
Answered on 4/12/13, 3:54 am


Related Questions & Answers

More Consumer Law questions and answers in Kansas