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Auto Loan Never secured? Help!


southernmel1st
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Ok, this is kinda a long story but I really need help with this. Back in April of this year we went to a car lot that was highly reputable and bought a car through a small local finance company that usually finances for trouble credit. After the 45 days were up on the car lot's paper tags on the car, they kept giving us excuses about the registration, tags and paper work. They always ended up giving us a new paper car lot tag. Well, July gets here, still no tags or anything else for that matter. We had long since stopped driving the car. We were paying our car loan on time and everything. Well, my contact at my finance company called and said that the car lot had gone out of business and had yet to turn in any paperwork. The finance company, to this day has over 15 cars from that lot that STILL don't have tags. Our DMV will not give me tags or anything. They sent me a letter saying that they have to wait until they get the car title to secure the loan on the car. What happened with the Car lot is that they bought the car at auction under a "floor planner" and they never paid the floor planner. The floor planner ended up sending the title to their insurance company and the insurance company will not turn it over until they get payment. The car was already paid in full once. During all of this, I'm still making my payments. I contacted our state consumer affairs dept. and got a nice little tip about putting the finance company on "HOLD per Holder in Due Course Law". So that is what I did. Here is what I wrote. "Dear Whomever it may concern:

I am placing you on notice under the Holder in Due Course Law of the State of South Carolina. This is in reference to the ******* that was purchased in good faith from Ralph Simms Auto Sales and financed by your institution. I personally fell this transaction to have been unconscionable at the time it was made, or to have been induced by unconscionable conduct. I am a consumer and I have rights under law. As a Holder in Due Course, I didn’t know or have reason to know of problems or claims involved with vehicle at the time of purchase and contract. Therefore, this means a consumer cannot be required to make payments in the above circumstances.

 

Thank you,"

 

I have also taken the car off of my insurance due to the fact that I am not going to throw anymore money away on a car that I was told I will never own or be able to drive. The finance company sent me a letter telling me that I have to pay for insurance through them......I DON'T THINK SO!! Please...someone help me with this. Is there anything else I can do? Can I get out of the contract all together? Who would I need to talk to about this? Please, I'm desperate. I'm tired of seeing this poor little car sitting in my driveway. HELP!!!

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I think most states have a time limit on how long it may be till the lien is perfected. It would have been incumbent on the selling dealership to perfect the lein in favor of their lending institution within the alloted time. The lender would have recourse against the dealer. Or if your state allows, the lender might want to pay for a bonded title if they understand the circumstances and want to keep the loan in place.

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Well, at this point the SCDMV is currently investigating. But this has been going on for a VERY long time already. The DMV says that there is nothing that they can do. They have turned the investigation over to SLED and SLED has taken the dealership's owner in on however many accounts of fraud and numerous other things. As the consumer, what protection other than Holder in Due Course, do I have? Can I get out of this loan and say, "I'm done with it." Without legal recourse? This car is nothing but a sinking black hole for money. During this whole thing, I have had to go out and buy another car to replace this one. I can't do this any longer. When I bought this car, I had NO idea that any of this would happen. The loan hasn't even been secured yet. Can't I back out? How can they charge me for insurance due to the requirements in the loan contract if they haven't held up their end of the bargain? I'm totally confused as to how they can act on the insurance part of the contract when I have put them on hold under the holder in due course law.........confused. :)

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Well, he got his. He is being convicted of numerous counts of fraud and he has lost his business and is declaring bankruptcy. All along, disappointing his whole family. They have been in business for over 20 years here where I live. Trust me, he is getting what he deserves. I just want to know how I can get out of this all together. I want nothing further to do with it!

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Wow. I can't imagine this is going to be resolved in your favor unless you hire an att'y. Nobody in this transaction is going to act in your best interests.

The finance company isn't going to tell you how to get out of the contract, the dealer has gone BK and the DMV can't give you legal advice.

I agree that a visit with your DA might be productive. If not, check with a good local att'y.

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Yeah, I know this much. The finance company already tried to lying thing and ended up with a foot in the mouth. They tried to say that I HAD to make my payments. Then I quoted Holder in Due Course in an official letter and BOOM, their story changed fast. I think that they sense a possible lawsuit, that is why they are currently kissing my butt!! Do you think that I could go to my local magistrate office? Would they possibly do anything?

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Wow. I can't imagine this is going to be resolved in your favor unless you hire an att'y. Nobody in this transaction is going to act in your best interests.

The finance company isn't going to tell you how to get out of the contract, the dealer has gone BK and the DMV can't give you legal advice.

I agree that a visit with your DA might be productive. If not, check with a good local att'y.

 

What type of attorney would you suggest? Consumer? And what if I don't have any extra money laying around? Is this possibly something that I could get resolved on my own? I have paid over $2,300 on this car to date and I was wondering if maybe a lawyer could get that back as payment. Just a thought. What do you think?

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I'm not a lawyer, but I have a few suggestions.

 

1. If you drop insurance on the vehicle, make for damn sure, that you turn in the plates @ the DMV

within 10 days, or you might get your license suspended and hit with a fine.

 

2. Talk to a lawyer. The first consultation is usually free. This would likely be a civil matter

and most lawyers will take civil cases on contingency. It still costs money, but on the back

end, *if* he recovers anything.

 

3. Talk to your local DA and make sure you are within your rights, whatever you do.

 

4. GOOD LUCK. I had a similar situation, in that, I paid almost 2K for a new motor in a car,

the dealer took a month to do the work, then handed the vehicle back. 1 week later, after

my check cleared of course, they went BK. another week later and I realized they did no

work whatsoever. Same old motor. Same problems. Sadly, I got screwed in the end,

with no compensation. I did not have a lawyer. Were I to do it again, I would DEF. have

spoken to someone at least.

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I'm not a lawyer, but I have a few suggestions.

 

1. If you drop insurance on the vehicle, make for damn sure, that you turn in the plates @ the DMV

within 10 days, or you might get your license suspended and hit with a fine.

 

2. Talk to a lawyer. The first consultation is usually free. This would likely be a civil matter

and most lawyers will take civil cases on contingency. It still costs money, but on the back

end, *if* he recovers anything.

 

3. Talk to your local DA and make sure you are within your rights, whatever you do.

 

4. GOOD LUCK. I had a similar situation, in that, I paid almost 2K for a new motor in a car,

the dealer took a month to do the work, then handed the vehicle back. 1 week later, after

my check cleared of course, they went BK. another week later and I realized they did no

work whatsoever. Same old motor. Same problems. Sadly, I got screwed in the end,

with no compensation. I did not have a lawyer. Were I to do it again, I would DEF. have

spoken to someone at least.

Thank you VERY much for your suggestions!! I will make a few calls to some local lawyers tomorrow and see if any of them will try to help. About the insurance thing, the thing with that is is I never got tags on the car. That was one of the problems. The car LEGALLY belongs to someone else and without ownership, I can't get tags. They won't even let me pay property taxes on it. No temporary tags, NOTHING! It really sucks and that is why I want out!

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Doh.. I knew that.. (been like that all day @ work too).

 

What I really should have said was the papertags. Take all the paper tags and VIN to the

DMV, and verify that you are not responsible for insuring the vehicle. (ie. its not in your name).

I wouldnt actually surrender the tags as you may need them for court, but you should be

able to verify that you are not responsible for insurance.

 

I would def. check this. Getting your license suspended on top of all this would suck..

 

The peanut gallery is signing off before he makes an even bigger fool of himself.

 

Again, good luck.. sounds like you may need it...

Edited by sonicanatidae
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Doh.. I knew that.. (been like that all day @ work too).

 

What I really should have said was the papertags. Take all the paper tags and VIN to the

DMV, and verify that you are not responsible for insuring the vehicle. (ie. its not in your name).

I wouldnt actually surrender the tags as you may need them for court, but you should be

able to verify that you are not responsible for insurance.

 

I would def. check this. Getting your license suspended on top of all this would suck..

 

The peanut gallery is signing off before he makes an even bigger fool of himself.

 

Again, good luck.. sounds like you may need it...

Thanks! I totally understand what you are saying. We are in the clear. We have no ties to the car other than the contract with the finance company. We can not legally have ties to it with the DMV due to the fact that it is still owned by someone else. Thank you for your input. I really appreciate it!! Get some sleep!! Everyone has days like that!

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The finance company has no rights to the car either. Since they don't have a title with their lien on it, they can't repossess it if you don't pay. They can't force you to buy insurance either since they have no interest in the car. It appears they have already acquiesced on that. If you paid the finance company any money for their forced insurance, demand it back. They'll probably insist on holding onto the mopney you paid for principal and interest. I'm not sure what the legal status of that money would be.

 

Car dealers have to have a bond or insurance in order to do business, but the required amount may only be $50,000 or so. So if he does multiple total frauds like this that money will be quickly exhausted. You should still try to get a claim in as you might eventually get something.

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The finance company has no rights to the car either. Since they don't have a title with their lien on it, they can't repossess it if you don't pay. They can't force you to buy insurance either since they have no interest in the car. It appears they have already acquiesced on that. If you paid the finance company any money for their forced insurance, demand it back. They'll probably insist on holding onto the mopney you paid for principal and interest. I'm not sure what the legal status of that money would be.

 

Car dealers have to have a bond or insurance in order to do business, but the required amount may only be $50,000 or so. So if he does multiple total frauds like this that money will be quickly exhausted. You should still try to get a claim in as you might eventually get something.

Thank you very much. I'm really not sure how to get in on this and the money. The Dealer is being convicted of over 15 counts of fraud and he will be sent to jail if that has not already happened. I think that he is out of range if that is the case. About the finance company's insurance, they have just re-calculated the payment to include the insurance. But I haven't been making payments for over 2 months because I put them on Hold per the Holder in Due Course law. Now I am just wanting to know what to do next. I guess that I should call a lawyer but I don't have money to pay a lawyer. That is why I haven't up to this point. Any suggestions? I live near Myrtle Beach South Carolina if anyone might know someone..... :lol: lol

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