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Is it legal for Dealer's (NJ) to place on an additional 1%-10% interest rate on loan before customer signs lender's contract?

Port Charlotte, FL |

My Husband in 2009, purchased a Mustang GT. He placed $7,ooo down to cover NJ State taxes of $1,766 (& $189 title transfer), Gap insurance of $600, SOLU fee ( Extended Service plan ,which he never requested,or used either ) in the amount of $1,695. He had great credit around a 750-800 and he was told the only Lender offer was an interest rate of 24.99%. Is it LEGAL for Dealership to tack on an additional 1%-10% rate point system for their own financial benefit? Believe it's called a "reserve rate". My Husband was never shown the original % rate from lender, even though he requested it. He was given the run around & then being told it was 24.99%. We currently live in Florida now & have to buy another vehicle soon. We want to know our legal rights if we can decline that extra %.

If not legal to do this, is there a way to locate the original lender offer without the Dealer's additional rate % on it,so we can legally do something about that charge? And which type of Atty would we hire to review this case? My Husband and I hadn't know one another at that time either. If so.. I would of intervened in that sale. Ignorant decision which has followed him....Us now, for the last several years. Paying $544 monthly. This loan we are upside down on with being unable to refianance, or trade in... All of this due to from a higher % rate... He bought this car several months before his company merged with laying off over 3,ooo people, him being one of them. He worked there for 18 years.

Attorney Answers 1


You may have some kind of case. An attorney would need to look at the contract that you signed. That is an extremely high rate (even before the tacked on part) for a person with that high of a credit score.

This answer should not be construed as creating an attorney-client relationship, and is for informational purposes only.

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Thank you SO much Mr.Criscione. We believe that now my Husband actually received an alot lower,but just proving this. We've already had this company make an attempt to remove an unauthorized amount of $730 from our checking account. Thankfully we discovered that pending charge and went to the Bank immeditaley to "stop merchant payment". Contacted this company (santander) and authorized a $430 payment with them again,which wasn't removed,then had our car repossessed week and half later. They company stated the had to verify their conversation (audio) that my Husband did indeed not approve that $730 payment. We never heard anything from them,so they stated the would contact us about that conversation. We did have the car be removed from Repo in 02/2013, although now having more issues and they won't work with us, And declined accepting off lower settlement amount of car. Offered $8500. Car's value is around that now at auction. we don't want our/his credit to be ruined and stuck horrribly from this high % rate.



we offered lower amount ***

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