Legal Question in Consumer Law in New Hampshire
Auto sales contract fraud ?
In March of this year, I purchased a 2000 jeep cherokee from
a used car dealer. I signed a purchase sales contract stating price, lender amount financed,and interest rate.
The rate was for 8.9% . About five days later, they called me in and said the bank wanted a higher rate of 14.9% based on my credit. Being nieve at the moment, I signed a new contract at that rate.
Though I had minor credit problems in the past, I checked my credit, and it is fine. New car dealers have since told me I could a rate of 5.%
I was told they put me in whats called a sleeper car, and buried me negative equity, and pocketed the higher interest rate. I have my current sales contract, plus the original one. I was told what they did was illegal. I would like to know if this is true.
1 Answer from Attorneys
Re: Auto sales contract fraud ?
If it is a fact that the used car dealer told you that the lender required an interest rate of 14.9%, and that statement was false when made,
then you probably have an action for money damages. Those damages would probably be the difference between the finance charges on an 8.9% loan and a 14.9% loan. Perhaps, an argument could be made that the conduct constituted an unfair or deceptive trade practice under RSA 358-A, which could be
multiplied two or three times, plus your attorney fees. As to the dealer, if it was an outright sale financed by a loan from the lender, I doubt you could recind the sale contract. If it was an installment
sale contract, maybe you can because the fraud would go to an essential element of the contract, the price. If it was an outright sale, financed by a loan from the lender, AND the dealer was the agent of the lender, maybe
you could recind the loan contract.
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