An article in today's New York Times discusses the increase in subprime mortgage lending. As the article points out, although most of the really bad mortgages that caused the financial crisis were subprime loans, not all subprime loans are bad. People with less than...
Month: June 2014
Marking Up The Interest Rate
Car dealers like to brag about their relationships with multiple banks and finance companies, and they often imply that these connections help consumers get low interest rates. But, many consumers would be surprised to learn that car dealers frequently mark-up the...
Dan Blinn on Law Talk
Managing Attorney Dan Blinn will be the in-studio guest on WTIC 1080 Law Talk on Saturday, June 28 at 3:00 pm. He'll be talking about how to avoid getting ripped off at the car dealership. Feel free to call in and ask any consumer law related questions.
Buying Former Rental Cars: Good Deal or Big Headache?
Car rental companies owned nearly 2 million in 2013, and most of those rentals will be resold on the consumer market. Some rental companies have retail divisions that sell former rentals directly to consumers. Many of those cars can be a good deal, and many rental...
Games Dealers Play: Dealer Conveyance Fees
One of the biggest tricks in the car business is the "dealer conveyance fee," which is supposed to compensate the dealership for its costs in processing the paperwork, taking care of the registration, and closing the deal. About 20 years ago, dealer conveyance fees...
CashCall and Western Sky borrowers may be entitled to a refund!
Important news for Connecticut residents who have taken out a payday loan: the Connecticut Department of Banking recently reached a settlement with CashCall, Inc. and Western Sky Financial, LLC concerning unlawful lending practices. Customers that took out a payday...
Games Dealers Play: VIN Etching
One trick played by auto dealers to boost their profits is to charge customers to etch the vehicle identification number (VIN) onto the windows of a car. The VIN is a 17 digit number that is unique to a specific motor vehicle. There is some evidence that car thieves...
Games Dealers Play: Not Paying Off the Trade-In
Many consumers decide to trade-in their cars before they have paid off the old loan. When things go right, the dealership will obtain a pay-off amount from the bank or finance company and will make the payment on time and for the proper amount. The dealer gets the...
I Bought a Certified Pre-Owned Car – and it was WRECKED!
Most car manufacturers have certified pre-owned ("CPO") programs. Typically, CPO programs involve an inspection by an authorized dealership, who "certifies" that the car meets the manufacturer's high standards. For example, Toyota advertises that it has a "160-Point...
Avoiding online car buying scams
Readers of our blog are no stranger to car buying scams. Indeed, many of our blogs are devoted to auto dealer fraud, like last week’s blog. In that blog post, we described how some online “internet prices” were actually after an undisclosed down payment. And, after...
Be careful when shopping for a car online
When a Connecticut resident needs a new car chances are they will search the internet first before heading into the dealership. This can be a good way of checking prices, models, features, etc., but a recent article in PC Magazine highlights the deceptive nature of...
Don’t get burned by these three common types of auto fraud
Studies show that around 1 in 10 property/casualty insurance claims are fraudulent. In fact, insurance fraud is close behind tax evasion amongst some of the most pervasive white-collar crimes. This means that the likelihood of experiencing the outcome of such fraud is...
Understanding title types to make an informed purchase
When a person purchases a used vehicle, it can sometimes be difficult to know the vehicle’s full history. The vehicle may have been in accident, may have flood damage or may have been owned by several different people. Buyers may not be aware that there are several...
What if I buy a car that’s been in an undisclosed accident?
Buying a used car always is a little bit of a gamble. You may choose to buy a car from an auto dealer because you feel better about that than buying one from a private party. However, auto dealers sometimes are sneaky and may try to sell you a car without disclosing...
Don’t be afraid to fight against auto fraud
If you believe that you have become a victim of auto fraud, it's likely that you have had some unpleasant interactions with your dealer. You'll likely be left with a bitter taste in your mouth and feeling that you have been short-changed in some way, but you may be a...
Review of Connecticut’s repossession laws
Most people in Connecticut realize that those who provide automobile loans have the right to repossess the vehicle if the borrower does not make timely payments. However, what they might not realize is that borrowers have rights during the repossession process, and...
Vehicle disclosure requirements and what if they are unmet
Buying a vehicle is exciting and a big step for many people. For that reason, car buyers and consumers should be familiar with vehicle history disclosure requirements and auto dealer fraud and how they can protect themselves. Vehicle disclosure requirements Vehicle...
What can you learn from a VIN search?
Every vehicle is a unique machine that comes with a unique identifier – a vehicle identification number. Known as a “VIN” number, this identifier is an alphanumeric code that provides important information about the vehicle's history. There are ways for...
Auto dealer fraud alleged against people who sold vehicles online
When people in Connecticut and the surrounding areas buy a used vehicle, they are placing an inherent level of trust in the person or company selling it. Because the vehicle’s history plays such a significant role in its durability, its safety and its function, buyers...