Purchasing a car is a very exciting life event. You find a match, sign the paperwork, make a down-payment and get the keys. Most consumers would assume that’s the end of the transaction but a certain practice conducted by some dealerships may make it possible for the dealership to reclaim the vehicle at a later date and time. This practice is called Spot Delivery. This is when a car dealership will tell a customer that they have been approved for financing and complete the paperwork and sale without knowing if a finance company will actually purchase the customer’s credit contract. The dealership will give the customer a temporary registration number and if a finance company will not purchase the customer’s credit contract, then the dealership may decide to reclaim the vehicle. This is called Yo-Yo financing. The dealership may employ deceptive tactics to regain possession of the property including luring customers in under false pretenses such as the opportunity to receive free services. Sometimes the dealership will even refuse to return the down payment.
Not only is Spot Delivery unethical but this is considered an illegal practice in Michigan. Customers that have suffered from this practice may recover the value of the vehicle and sometimes other damages under the Truth In Lending Act and the Michigan Credit Reform Act.
If you have been the victim of Spot Delivery or Yo-Yo Financing, call the attorneys at Garmo & Kiste, PLC. We are experienced attorneys that will fight for your rights. Contact Garmo & Kiste, PLC at (248) 398-7100 now for a free consultation or contact us with a private message.
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