Legal Question in Consumer Law in Massachusetts

Automotive loan

One month ago my girlfriend purchased a new vechile. She signed a contract giving her 0% financing for the life of the loan (5yrs). HOwever the dealership has called her telling her that they made a mistake and now she must have a loan at 5.5% and that she was not supposed to get this rate. They are threatening to reposses her car if she does not pay. However she has received nothing in writing from the dealership in this matter, and there are no terms in the contract that allow them to change the rate of the loan. Does she have to pay, even though she has a signed contract. Surly the dealer can't claim substantial loss on the vechile making it a ''valid'' error?


Asked on 7/23/02, 4:20 pm

2 Answers from Attorneys
Nance Lyons Law Office of Nance Lyons

Re: Automotive loan

The Massachusetts Consumer Protection Act, Chapter 93A deals with unfair and deceptive practices. Demand that dealer write to you outlining his case. You can then respond that you believe he has violated 93A by changing the terms of a written agreement. If that does not resolve it, you can file a lawsuit. You should consult an attorney if a lawsuit is necessary.

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Answered on 7/24/02, 2:22 pm
Robert Trant Law Office of Robert R. Trant

Re: Automotive loan

Based on these facts, it appears that the dealer made the mistake and they should suffer with it. As long as you are making the payments, they can not reposess the vehicle simply because they do not like the terms of the loan. As long as there was no fraud on your part in obtaining the loan then there should be no grounds to modify the terms of the loan. If they call again, I would demand something in writing stating why they should be entitled to alter the terms of the loan after all documents had been signed. I would then consult an attorney to respond to the dealer's letter.

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Answered on 7/23/02, 4:42 pm


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