- Report: #903001
Complaint Review: DriveTime Inc. - Poenix Arizona
Reported By:
Oleo -
Tavares, Florida, United States of America
Submitted:
Updated:
-
Author Confirmed
Why?
DriveTime Inc.
4020 E indian School Road Poenix, 85018 Arizona, United States of America
Phone:
1-888-418-1212
Web:
http://www.drivetime.com
Categories:
Business Rating:
(0)
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DriveTime Inc. Ugly Duckling Kars Fraudulent Disclosure of terms of contract. Poenix, Arizona
My daughter-in-law recently purchased a 2003 Jeep Liberty from DriveTime which is not advertised as such but is a Buy Here Pay Here (BHPH) organization. The contract she signed did not correctly disclose what she would be paying in total for the Jeep and most all of the totals of interest, amount of financing, were off by as much as $5,230.65.
The only disclosures that were correct was the bi-monthly payment and the interest rate which if totaled makes all the other disclosures wrong. Nowhere in the paperwork she signed is there any disclosure that she must pay additional
charges. The bottom line is she would be paying $28,842.32 for an auto which is valued at around $8,000.00 with 22.388% interest. That is; 277.33 payment X 104 payments. Until recently Truth in Lending requires most lenders to disclose most of the aspects of the loan/sale. Most buyers at the time of sale cant calculate compound Interest hence, Truth in Lending. However, looking at the regulations I see BHPH organizations somehow fell through the cracks and werent regulated. See; http://articles.latimes.com/2012/apr/21/business/la-fi-buy-here-suit-20120421 where specifically DriveTime and other BHPH organizations are being investigated by the U.S. Consumer Financial Protection Bureau-- article from the L. A. Times.
My question is, isnt this a fraudulent contract and even though BHPHs may not be regulated does this constitute fraud? If so, how expensive would it be to return the car and have this contract declared null and void? Researching
DriveTime on internet there are many, many complaints about all aspects of this organization and a good reasons for not wanting to stay in this contract. In my opinion everything about DriveTime is fraudulent.
The only disclosures that were correct was the bi-monthly payment and the interest rate which if totaled makes all the other disclosures wrong. Nowhere in the paperwork she signed is there any disclosure that she must pay additional
charges. The bottom line is she would be paying $28,842.32 for an auto which is valued at around $8,000.00 with 22.388% interest. That is; 277.33 payment X 104 payments. Until recently Truth in Lending requires most lenders to disclose most of the aspects of the loan/sale. Most buyers at the time of sale cant calculate compound Interest hence, Truth in Lending. However, looking at the regulations I see BHPH organizations somehow fell through the cracks and werent regulated. See; http://articles.latimes.com/2012/apr/21/business/la-fi-buy-here-suit-20120421 where specifically DriveTime and other BHPH organizations are being investigated by the U.S. Consumer Financial Protection Bureau-- article from the L. A. Times.
My question is, isnt this a fraudulent contract and even though BHPHs may not be regulated does this constitute fraud? If so, how expensive would it be to return the car and have this contract declared null and void? Researching
DriveTime on internet there are many, many complaints about all aspects of this organization and a good reasons for not wanting to stay in this contract. In my opinion everything about DriveTime is fraudulent.
4 Updates & Rebuttals
Oleo
Tavares,Florida,
United States of America
DriveTime Inc. Ugly Duckling Kars Fraudulent Disclosure of terms of contract. Poenix, Arizona
#2Author of original report
Wed, June 27, 2012
Naah, Truth in Lending Requires the Total Financed amount to be correct. In my opinion this is out and out FRAUD. Total Interest was off also by about $4000. You must be from DriveTime or at least have that car dealer mentality so prevalent in this country today.
coast
USAQuick simple estimate without a calculator
#3Consumer Comment
Tue, June 26, 2012
Anyone with a sixth grade education knows that $277 X 100=$27700 so she must have known that she was agreeing to pay more than $27700. $250 X 4=$1000 so the quick simple estimate is $28700.
The 12-year old kid that mows my lawn knows that.
The Outlaw Josey Wales
Golden Meadow,United States of America
Rules are very simple
#4Consumer Comment
Tue, June 26, 2012
If you post here, be ready to get rebutt from the grandmaster of Rebutts
Robert
Irvine,California,
U.S.A.
A few things..
#5Consumer Comment
Tue, June 26, 2012
The contract she signed did not correctly disclose what she would be paying in total for the Jeep and most all of the totals of interest, amount of financing, were off by as much as $5,230.65.
- What method of calculation did they use for the Interest? There are many types and while the standard is a Simple Interest Loan, most Sub-Prime lenders use other methods such as the Rule of 78's and other types that could increase the amount of interest.
The only disclosures that were correct was the bi-monthly payment and the interest rate which if totaled makes all the other disclosures wrong.
- So according to you she knew she was going to have a 22.388% Interest Rate and have to make bi-weekly payments of $277.33 and she didn't have a problem with it?
Then even if we take your claim that the total was off by $5,230. That still means she was willing pay about $23,612 for a car that is valued at $8,000 according to you. Just something to think about.
As for if you can get out of the loan..probably not. But it may be to your advantage to spend a couple hundred dollars to have a lawyer look it over. If it is invalid they could help you with getting the contract voided. If the contract is legal your daughter has just learned a very expensive lesson. To read everything she signs and to not sign anything until she fully understands and can verify it is correct.
