Car Dealer Lied About Financing: Know Your Rights

If a car dealer lied about financing, you have rights and options to consider. The dealer may have misrepresented the terms of the loan, such as the interest rate or monthly payment.

The dealer may have also failed to disclose certain fees or charges associated with the loan. This can include origination fees, title fees, or other charges that are not clearly explained.

You may have been approved for a loan with a higher interest rate than you were initially told. This can result in higher monthly payments and a longer payoff period.

You have the right to dispute any inaccuracies in your loan documents and negotiate a better deal.

If a car dealer lies to you, it's likely they'll do it again. They often ignore customer complaints, but they rarely ignore a lawsuit.

You should consider pursuing legal action if a car dealer lies to you. This is especially true if the dealer lied to you once, as they're unlikely to rectify the situation voluntarily.

Pursuing a lawsuit can be a complex process, but it may be necessary to protect yourself from further deceit. Whitney, LLP’s auto fraud attorneys may be able to help you fight back and recover compensation.

Lying car dealers often prioritize their interests over yours, so it's essential to take a stand and seek help if you've been misled.

Car dealerships use various methods to commit loan fraud, including yo-yo financing, where they promise favorable loan terms to get you to purchase a car, only to later claim the original financing fell through and present you with a new contract featuring higher interest rates or monthly payments.

Some common car dealer lies include withholding important information about the vehicle, such as its history as a rental car, and misrepresenting the vehicle's condition.

Yo-yo financing is a common dealer trick where they sell you a vehicle under a payment plan that you approve, but then claim the original financing was rejected and ask you to approve a different financing plan with higher costs.

Dealerships may also submit multiple loan applications to different lenders without your knowledge, causing unnecessary hard inquiries on your credit report.

If a car dealership lied about your loan terms, the financial consequences can extend far beyond the issue of higher monthly payments, and may include damage to your credit score and the potential for your car to be repossessed.

Some signs of financing fraud include dealers who seem overly eager to discuss monthly payments while avoiding questions about the total loan amount or interest rate, and those who pressure you to sign incomplete loan applications or rush you through document review.

Here are some red flags to watch out for:

If you suspect that you have been a victim of car dealer financing scams, it's essential to seek the help of a consumer fraud attorney who can evaluate your situation and develop effective strategies for pursuing legal action against the dishonest dealer.

If your car dealership lied about financing and you're suffering the consequences, you need to take action. Maryland consumer protection attorneys can help you file a lawsuit against the dealer.

Many consumer protection laws exist to protect car buyers from fraudulent financing practices. In Maryland, these laws provide various remedies for the car buyer, including the right to recover compensatory damages, punitive damages, and attorney fees.

Working with an experienced consumer fraud attorney is usually the quicker and more effective way to get compensation. They know the steps to take to win your case against the dealer, including sending a demand letter that the dealer is more likely to take seriously.

Car dealership fraud in financing transactions often follows a predictable pattern. Initially, a dealer might promise favorable loan terms to get you to purchase the car, but then days or weeks later, they contact you saying that the original financing fell through.

Here are some common signs of financing fraud at car dealerships:

If you've been a victim of car dealer fraud, don't hesitate to seek help. Contact an experienced Maryland consumer protection attorney to discuss your claim and get the compensation you deserve.

If a car dealership lied about your loan terms, the financial consequences can be severe. Many victims of dealer fraud face financial problems that can take years to resolve.

Higher monthly payments are just the beginning. The dealership's submissions can count as hard inquiries, which can stay on your credit report for up to two years, hurting your ability to obtain other financing.

Paying excessive car payments can lead to attachment to the vehicle, affecting your decision-making when financing the car. In severe cases, consumers can have their car repossessed, causing further credit damage and potential legal complications.

You may be entitled to various forms of compensation, including:

Your attorney can explain which types of compensation apply to your specific situation and help pursue appropriate remedies.