Buy Here Pay Here-Questionable Auto Loans

As an Oregon Consumer Lawyer I regularly represent Oregonians who are ripped off by car dealers.  I regularly receive calls from consumers who has issues with Auto lenders.  These issues can relate to the interest rate being charged, yo-yo scams, issues with the financing disclosures, or dealers trying to make consumers provide false information in order to obtain financing.  Sometimes, in their effort to get the car off of the lot, dealers will flagrantly violate the various laws that apply to them.  Other times, the dealer's conduct is legal, but morally questionable.

I have seen this as a growing issue in Oregon.  I am not alone with my concerns.  It appears there is a national trend in providing questionable auto-loans to consumers.  These questionable loans are sometimes written with very high interest rates (29% APR) and for extremely long terms (7 years).  What this means is consumers buying an $8,000.00 car may end up paying almost $15,000.00 for the car after the interest is added into the price of the cars.

The dealer's justify the high interest and lengthy terms of the loan by asserting that the consumer is a huge credit risk.  Most of the consumers that obtain these loans have horrible credit and are likely to default on the loan.  I have litigated cases where the dealers have stated that my client's credit was terrible and that my clients were fortunate enough to have someone like the dealer take the chance to finance the vehicle. 

From the consumer's perspective, these loans set them up for failure.   The high interest rate for lengthy terms sets the consumer up for failure.  The dealer knows that most people need a car for transportation.  Vehicles are almost necessities in many cities.  Additionally, the dealer already knows the consumer has issues with paying creditors, because the consumer has terrible credit.  Despite that, the dealer piles on more debt in an effort to get the car off of the lot.  Then when the foreseeable missed payment happens then the dealer repossesses the car and can re-sell it to another customer.   

 The dealer makes money on the transaction by: 1) getting to keep the trade-in or down payment the consumer made on the car and, 2) keeping the interest on the loan from payments already made on the loan before missing a payment, 3) sometimes dealers will attempt to re-finance the purchased vehicle or agree to take the vehicle back if the consumer purchases another vehicle from the lot (this usually re-starts the cycle), 4) the dealer gets to re-sell the purchased vehicle to another consumer and make money on that transaction. 

Additionally, the dealer's risk is much more manageable than the dealer leads people to believe. Dealer's can place devices in the vehicles that allows the dealer to track the vehicle.  If a consumer misses a payment then the device can shut the vehicle down until a payment is made.  If the consumer fails to make a payment the dealer uses the device to locate the vehicle and repossess it.   I believe these devices are one thing that is allowing these bad loans to become more prevalent. 

The Comedian Jon Oliver recently did a great piece on Auto Lending and how these sub-prime loans are affecting consumers.  The piece has some shocking statistics and stories of people being ripped off by Auto Lenders.  

If you or someone you know has been ripped off or scammed by an Auto Dealer, please call Jeremiah Ross.  Please call Ross Law LLC at 503.224.1658 .   Please remember there are some reputable and honest car dealers, and just because you have a questionable loan that does not mean the dealer broke any laws or you have a case against them.   

CLIENTS RECEIVE (ALMOST) FREE CARS AFTER BEING RIPPED OFF BY A DEALER!

Sometimes the stars align and I am able to achieve incredible results for my clients.   A recent case involving a car dealership that ripped off my clients is one of those instances where we somehow pulled off the impossible.  I don't know if I will be able to achieve the same results in a future case, but it feels good to make things right for my clients. 

My clients were ripped off in the purchase of two vehicles last year.   They had difficulty making payments on the vehicles and defaulted on the loans that totaled roughly $45,000.00.   Meanwhile we were involved in litigation with the dealership who denied any wrongdoing and attempted to paint my clients as deadbeats who could not pay their bills.   It took over a year to litigate the matter.  In the meantime, lenders were threatening to repossess the vehicles and sue for the deficiency.   

My clients prevailed in a private arbitration hearing, and the arbitrator awarded my clients over $40,000.00 plus attorney fees, and costs.  The award was based on the dealership violating Oregon's Unlawful Trade Practices Act (UTPA) and the Truth In Lending Act. Punitive damages were sought, but not awarded.

  In an effort to escape being held accountable for the judgment, the dealer then claimed they were going to assert Bankruptcy.  When a dealership files for bankruptcy it can put a stay on any debt collection efforts, so the filing must be taken seriously.  This is where things became interesting and a lot of posturing occurred between the parties.   While the parties were posturing, I had researched the law on the various ways this may play out.

At the end of the day we were able to collect roughly $25,000.00 from the Bond Company.  The dealership agreed to purchase the vehicles from the lenders and relinquished title to the vehicles to my clients full and clear of any encumbrances. That is just a fancy way of saying the dealership agreed to give my clients the vehicles in exchange for my clients not collecting on the arbitration award.   The dealer has managed to avoid Bankruptcy so far. I am not going to divulge the intricacies and maneuvering that occurred to get this done.  However, I believe it is achievable again in a very limited amount of cases. 

If you have been ripped off by an Oregon car dealer, please call Ross Law LLC at 503.224.1658.  Also, remember Jeremiah Ross also represents persons that are injured in car crashes, bicycle crashes, pedestrians that are injured by vehicles, and persons that are injured by the negligence of others.   Please call today for your free PERSONAL INJURY consultation.  REMEMBER: RESULTS MAY VARY!  Just because I could do this for two clients does not mean I will be able to achieve these results for any future clients. 

Judgment Enters against Portland RV Wholesale for $15,939.12

I recently represented some clients that were ripped off by a RV Dealer.  The dealer denied any wrongdoing.  The arbitrator disagreed, and found Portland RV Wholesale was in violation of the Unlawful Trade Practices Act (ORS 646.608).  The total award was $15,939.12.

Jeremiah Ross Prevails in lawsuit against Portland RV Wholesale

I recently prevailed in a Lawsuit against another vehicle dealer on Portland's 82nd Ave.  On behalf of Ross Law, I represented a couple that purchased a motor-home from Portland RV Wholesale.   During the purchase the couple had questions about the motor-home and whether or not it would be inspected.  Portland RV wholesale's sales person informed the couple the motor home had been thoroughly inspected by Portland RV Wholesale.  

The couple later discovered the motor-home's  rear end and rear brakes were malfunctioning and needed to be replaced.  A mechanic noted it was obvious the rear end and brakes had been submerged in water for a period of time.  However, the couple never had submerged the vehicle in water, so the vehicle would have had to have been submerged in water prior to the sale.  If Portland RV would have inspected the vehicle they should have known that the vehicle was submerged and had defective rear brakes and a defective rear end.  

I relied on the Oregon Administrative Rules that apply to car dealers to show Portland RV Wholesale had engaged in unlawful trade practices.  The case was heard in court annexed arbitration.   The Arbitrator awarded also awarded my clients costs and their attorney fees under ORS 646.638.  However, this may be the beginning of a future battle. Portland RV Wholesale may request a trial de novo, and force my clients to put on the case again in front of a Jury.  Only time will tell what Portland RV Wholesale chooses to do. 

If you have been injured or ripped off, or a crime victim in Oregon please call Portland Attorney Jeremiah Ross at 503.224.1658.  Please remember that all outcomes vary and Jeremiah Ross does not guarantee you can prevail in your lawsuit.  Also, please note that this post is about a Court Arbitration, and Portland RV Wholesale has the right to appeal the matter and request a Jury Trial.   The outcome may be different at a Jury Trial.   

Ross Law LLC Prevails In another Arbitration Against Stop and Go Auto

Last month I posted about prevailing in  my recent case against Stop and Go Auto (AKA G&G Auto Enterprises LLC) in an arbitration matter.  Jeremiah Ross represented three other clients in a matter against Stop and Go Auto.   The Arbitrator awarded two of the clients damages totaling almost $45,000.00.  

The case was a complex transaction where three relatives attempted to purchase three vehicles from Stop and Go.   In doing so, one of the consumers provided property to trade in for her vehicle.    Ross Law was able to prove Stop and Go Auto unlawfully rolled the Negative Equity into the price of the new car.   Ross Law also proved Stop and Go used an illusory cash down payment that did not exist and noted it on the Retail Installment Contract.  Ross Law also proved Stop and Go failed to list the value given for four wheeler on the Retail Installment Contract   These were all violations of the Truth In Lending Act.  Ross Law also proved Stop and Go violated Oregon's Unlawful Trade Practices Act (UTPA) by not properly accounting for all of the property that was traded in, rolling in the negative equity to the purchase price, falsely advertising the price of the vehicle, and failing to give the consumer her key's back when asked. 

The second Consumer's case involved an unlawful Yo-Yo Sale.   After the three consumers left the lot with their vehicle, one consumer was called back in a couple of days later and told he got a better financing deal.  Unbeknownst to him the loan term was extended and the financing rate was increased.   This scheme allowed Stop and Go to lower the monthly payment while charging a substantial amount more to finance the vehicle.  Stop and Go also did not account for the property that was traded in to purchase this vehicle.    These were violations of the Truth In Lending Act and/or the UTPA. 

This case was also unique in the fact the consumers had attempted to settle their case with the dealer before I was involved.  They signed a release and waiver of all of their rights.  Basically they singed a piece of paper saying they would not sue the dealer.    I used the law to defeat the defense's claim that the consumers already settled their case. 

This was a very complicated case that another Attorney had turned down.   There were good facts and bad facts for both of the parties.  However, at the end of the day the arbitrator found in favor of my clients.   If you have any issues with an Oregon Used Car Dealer please call Jeremiah Ross at 503.224.1658.  Please note results may vary and there is no guarantee Ross Law LLC can prevail in your lawsuit.  

CAR WARRANTY ISSUES, THE MAGNUSON-MOSS WARRANTY ACT MIGHT HELP

Magnuson–Moss Warranty Act (15 U.S.C §2301, et seq): This Federal law applies to consumer products sold with a written warranty. However, it is not that cut and dry. It is important to review this statute to determine whether or not a “warranty” exists under the statute. Additionally, the claim must be examined to determine if it is ripe for litigation. The Magnuson Moss Act has an attorney fee provision. (15 USC §2310 (d) (2))

If you believe you have a car warranty or service Contract issue that an Oregon Lawyer may help you with. Call Oregon Attorney, Jeremiah Ross at 503.224.1658. Ross Law LLC is always willing to speak with people about their potential case. Please remember the law is constantly changing, so don’t rely on this post for legal advice.

WHAT YOU CAN GET IF A BUSINESS OVERCHARGES YOU….

It is all to common for businesses to overcharge folks during Holiday Sales.  Failing to honor advertised discounts, failing to give the sale price at the register, or giving the wrong sale price at the register can all be violations of Oregon’s Unlawful Trade Practices Act. (ORS 646.608)    Many people are overcharged and are unaware of it until they have the opportunity to review their receipt.   

Once the consumer returns to the store to resolve the price discrepancy they are greeted with long customer service lines and sometimes difficult staff that may not be very helpful.  Some stores ask consumers to call the “customer service” hotline.   It is no surprise many consumers give up simply due to the hassle of dealing with the return, but they shouldn’t.

Oregon’s Unlawful Trade Practices Act allows for consumers to file a lawsuit and seek either the cost of the item back, or $200.00, whichever is greater.  (ORS 646.638 (1)) To date, Oregon Courts have yet to resolve the issue of whether a consumer is entitled to  monetary compensation for inconvenience and emotional distress, so those damages may also be available. Additionally, if a consumer prevails their Attorney’s Fees and Court Costs should be paid by the business that overcharged them. Many attorneys in Oregon, such as Jeremiah Ross at Ross Law LLC, will take these cases on a contingency fee.  That means that the client may not  have to pay any Attorney’s fees or costs if they elect to file a lawsuit against the business that ripped them off. 

If you believe you have been ripped off by a business or overcharged, contact Portland Oregon based Jeremiah Ross at Ross Law LLC.  Call503.224.1658 for your free telephone consultation regarding your fraud or unlawful trade practices case. 

This post is for informational purposes only and should not be relied upon for legal advice.  Please remember the law is constantly changing and you should consult with an Attorney prior to making any decision regarding pursuing a case against a business who may have overcharged you.  This  post does not create an Attorney Client relationship. 

STORES QUICKLY RUNNING OUT OF SALE ITEMS AFTER ADVERTISING GOOD DEALS….

Many Oregonians stood in long lines and braved the unruly crowds to try and get great Holiday deals.  Most big box stores advertised great deals on specific items.   These deals are designed to lure people into the store where they will most likely purchase more than just the advertised item.

However, some stores will advertise amazing prices on an item and when you get to the store they claim they are out of the item. This may be a violation of Oregon Law.  ORS 646.608 prohibits stores from advertising goods “with the intent not to supply reasonably expectabile public demand, unless the advertisement discloses a limitation on quality.”

Why is this important?  A consumer that is a victim of this violation of the law may be entitled to either the item’s purchase price or $200.00 which ever is greater.  Additionally, some Oregon Lawyers, such as Jeremiah Ross at Ross Law LLC may take these cases on a contingency basis.  Their fees may be paid by the store that ripped you off.

However, people need to remember they need to be able to prove these violations. Cell phone pictures of empty shelves and screen shots of on-line advertisements can be great evidence of the violation. Notes regarding who informed you there are not any items left and a description of that employee can be useful to prove these types of violations. 

If you think you may have been a victim of a store’s unlawful trade practices then contact an Oregon Attorney.  Call Jeremiah Ross at Ross Law LLC at 503.224.1658 to schedule your free phone consultation. This post is for informational purposes only.  Do not solely rely on this post you should contact an Attorney to discuss your options.  Also, this post does not create an Attorney Client relationship.