Bank tried to change payment after the fact

Makes sense to me. Way to stick to your guns

 

A news story a few months ago reminded consumers in my state (Washington) that when similar financing 'screwups' cause the lender or dealer to come back for more money or higher interest rates after the fact, state law allows only two options:

(1) honor the original deal;

(2) cancel the deal entirely. Customer returns the new car to the dealer, dealer / lender returns the trade-in and all monies to the customer. The customer just got a free new car rental for the duration of the canceled deal. Dealer now has a 'used' new car.

Usually the trade-in has already be re-sold and is no longer recoverable, leaving the dealer and lender with only one remaining choice.

Beware that other states have different consumer protection laws.

 

State rules

One thng I am aware of is that for CA, once you do a lease contract, you're stuck. Meaning, as a dealership, if I screw up a lease and use the wrong residual, rate, or calculate things wrong, it's between me and the bank. The dealership eats the loss. On a purchase, you're OK to rescind the loan.

If this is a lease, I know in CA your dealership would have to honor it. I can't say for certain that in your state, it's the same. Car contracts can be rescinded by the dealer if they are purchase contracts and the dealership can't get it bought the way it's written and they don't WANT to eat the loss.

Dianne

 

Re: State rules

I'm going to go out on a limb here with a guess.
I don't think you should screw over your CU.
If there was a mistake and they used the wrong residual, your credit union's not the place to play hardball.
Why?
Next time you need THEM, they might just tell you to take a flying leap.
You may be able to do without other financial institutions... but I wouldn't screw my credit union over. I'm just giving you some... well, mom-type advice.

Dianne

 

If you want to play hard ball, keep track of your credit reports. Have a face to face with the loan officer, then his supervisor, and try to reach a compromise.

 

Re: State rules

What credit union did you use?

 

If your sister isn't admitted to the bar in your state you may want to consult with an attorney who is, just to make sure you are in the right. Assuming you are (and I think you should be) I don't think there is anything else you need to do other than stick to your guns. No reason for you to pay for someone else's mistake - you negotiated in good faith.

Actually, you probably want to consult an attorney in New York, since that's likely the state where the contract would be litigated, if it came to that.

 

I too would stick to my guns. Wherever you signed the contract is likely the state where legal recourse would originate. Keep in mind that almost no matter what you do, the residual value that they have assigned to your Prius at the end of the lease is likely to make them a good profit anyways, since they hold their values so well.

If they made a mistake, they made a mistake. I would think that in any case, they would not be able to get any more than the $50 extra, even if they tried to go to court. But then, I think their contract would trump it, and not be an issue. (btw, I am not a laywer, just a relatively informed citizen)

 

Just don't answer if a couple of big burly men in suits knock at your door.
eep::help::behindsofa:

 

Why does the OP need to reach a compromise?

 

Hi Zaxcom,

I've said it many times before on this forum - You never get the deal you deserve, you get the deal you negotiate.

You have every legal right to demand that the financial institution honor the executed agreement. If they screwed-up - its' their problem. Next time, they will be a little more careful to ensure that they perform their due diligence.

People in high-level management positions rarely put themselves in the position of being a "victim". (Playing the part of a victim is not a leadership attribute.) Meanwhile most people play the part of a victim thinking they have to do whatever somebody else (like a business) tells them - even if it is wrong.

Best wishes, and keep playing hard-ball.

Keith

 

Congratulations. That done, do you plan to buy it at the end of the lease? I tried leasing my Honda CRV which I still have for work and it was iffy 1.5 years ago - loan vs lease rate - and it was mostly for business. But now looking back with 1.5 years to go, if not for the business write off, I prefer purchasing (if reliable brand). It does depend on whether or not the state has sales tax since its easier to buy at residual and flip in OR accross the river then WA. Enjoy driving!