A relative recently obtained a motor vehicle loan from a lending institution/financial services lender, (NOT a bank or credit union), which was a auto dealership with its own in-house LENDER who is connected with this company and is owned by them. Our relative is on a limited income and already had bills that exceeded their monthly income. Our relative should have never been approved for the vehicle loan. And is now stuck with the auto loan they can’t pay. We feel that our relative was taken advantage of and that the loan should not have been approved. Our relative was also not thinking clearly due to medication problems. What if anything, can be done? What are their options?
Predatory lending is a practice that imposes abusive loans terms on the borrower. It can also mean that the terms are unfair and the borrower was convinced by deceptive practices, coercion, or exploitive actions to get them into a loan that they don't need, want, or can't afford.
From your description of your relative's mental health condition, this could be an Idaho Consumer Protection Act violation. Depending on what your relative wants to do, a lawsuit could be in order to have him/her return the vehicle or sue for actual damages. This could be as simple as sending a demand letter to a more complicated solution of filing a lawsuit. Any attorney would need the complete set of facts to better advise on this issue. It would be wise to contact an attorney.
This answer is offered as a public service for general information only and may not be relied upon as legal advice. It would be wise to consult an attorney.
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