Help wanted - Premier Auto Finance Balloon payment disposition

Letter | 10/10/2003 | Me

[TheBattman]

I traded off my 2000 Dodge Ram back in May of this year (6 months early). That truck was under a balloon payment (4 year) that was to run out this month. When traded, we paid the remaining payments plus the $400 "disposition fee" at that time.

The truck was very well taken care of, WAY below allowed mileage, nearly new tires, all scheduled maintenence (done by dealer), and quite clean. When we turned it in, the dealer did their inspection (required by the finance company) that turned up very clean with soem slight superficial scratches that I didn't have time to buff out of the rear fender. The truck also had extra-cost, value increasing, accessories (not tacky stuff - nerf bars, towing package, vent-visors).

The letter I received today (first contact from the company since we turned in and paid out the contract) is demanding (DUE IMMEDIATELY) $450 for "Excess Wear and Tear". There is no indication what that wear and tear is, just a dollar figure.

The finance company is "Premier Auto Finance". According to several people in the business I have talked to, this company is actually no longer in business, but is being run by a liquidator. They are supposedly no longer writing loans - just collecting on outstanding accounts.

OK- so it's just $450 - except there is a principal to the whole issue. They want payment within 15 days, yet they could not be bothered to contact us when they got the truck back in bettter than average condition, early, and with low mileage.

Paying the demanded $450 is not an option, particularly right now - Property taxes, baby on the way, budget already tight. I am really quite against paying this demand on principals alone. I also have not found any 15 day clause on disposition charges. My understanding after calling the original dealership's finance manager and reading all documents I can find on this account is that we should have heard within 30 days of their receipt of the vehicle.

[TheBattman]

I tried to call the person on the letter and left voice mail. My heart tells me that the corporate liquidator is trying to milk every penny they can from every customer. Also, they feel that the $450 ammount is not enough to be worth the average consumer to fight.

In my voicemail, I indicated that I would not even consider the demand without an itemized list of supposed damages and cost to repair.

Of course, I could be completely disillusioned. Anyone with suggestions or insight into such a situation?

[Support Free Republic]

"Facts are stubborn things, and whatever may be our
wishes, our inclinations, or the dictates of our passions,
they cannot alter the state of facts and evidence."
- John Adams -

Make your statement.

[arjay]

I hope you took detailed pictures of the vehicle before turning it in. That can keep you out of a lot of trouble.

[TheBattman]

Oh - and if it matters any more - we had a 100% perfect payment record over the course of the contract. The full contract was paid out, even for the months we didn't have the truck (May -October)

[TheBattman]

The thought crossed my mind, but when the inspector at the dealership did the inspection and had an itemized list of "damges" with complete description, I thought that might be enough - maybe a mistake.

[ChadsDad]

bump to follow

[woodyinscc]

Did you trade it in at the same dealer you leased it from?

[Always Right]

My understanding after calling the original dealership's finance manager and reading all documents I can find on this account is that we should have heard within 30 days of their receipt of the vehicle.

I would think they lost any legal claim to excessive wear and tear if they did not bill you for it within the 30 days.

[donozark]

I just hope the "liquidator" is not Cavalry Investments! If so, do NOT give them a check number nor arrange for any electronic transfer of funds to them. Do NOT give them your account number-any. They will then access you account-without your approval. Bastards one and all-so I'am told.

I hope you saved the checklist from the dealer or some statement signed by him attesting to general condition of vehicle. If not, contact dealer immediately and see if he "saved to disk." Most do nowadays.

You also may wish to check with AG in you're state to see if this particular company has pulled this crap before. Also, Better Business Bureau.

Note all of above suggestions are free...Other option? Attorney.

[Bogey78O]

Well there's a list of damages. I assume you could go and get that as evidence. Subpeona the dealer who made the list if they try and go to court over it.

[VxH]

Neither a lender nor a borrower be.

~Buy~ Used.

My 18 year old Ranger still works just fine.

I bought it back in 1985 - used.

[strela]

I just hope the "liquidator" is not Cavalry Investments! If so, do NOT give them a check number nor arrange for any electronic transfer of funds to them. Do NOT give them your account number-any. They will then access you account-without your approval. Bastards one and all-so I'am told.

Two good friends of mine have had "dealings" with Cavalry Investments. Snakes, one and all. STEER CLEAR!

[ErnBatavia]

Send 'em a Certified Letter telling them the day the vehicle left your possession, noting that any excessive stuff they're billing you for must have happened within the six months.

[Bikers4Bush]

If you didn't hear within 30 days you should be off the hook. The liquidator is definately looking to squeeze you.

See if you can get the dealership and if possible the person who did the inspection to write a letter on your behalf and then either send it to the liquidator or keep it for ammo later.

They may give up over $450 instead of trying to fight you.

You could also make up a bill for all the extras you put on and send them that as a polite way of saying go to hell.

[RonHolzwarth]

re: "Neither a lender nor a borrower be. ~Buy~ Used. My 18 year old Ranger still works just fine. I bought it back in 1985 - used."

No kidding! Only dumb assed people finance vehicles. If you have to finance a car, you are paying to transport your ego, not your butt.

Oh, well there is another reason to finace or lease, I guess.

To impress your neighbors!

I drive a '87 Honda. Cost me $1,300. Got bumped on the back at a stop light, another dent. Oh well, I guess it was worth the $800 I collected, which was actually only 67 cents on the dollar for the damage done.

So, I got the car for $500, I guess, plus repairs. Been driving it for two and a half years now. Best car I've ever owned!

[Califelephant]

I understand these kinds of after-the-fact charges are also very common when leased vehicles are turned in.

If you have time and can get through, call Clark Howard's radio show -- he's a consumer advocate who always has good advice on situations like yours:

http://clarkhoward.com/

[FairOpinion]

Suggest you WRITE to them (so you have a record), tell them that at the time you turned in your truck, it was inspected and everyone agreed you paid in full. If you have any paperwork you received, make a copy and send it along (but first read the fine print VERY carefully, to make sure there isn't some fine print saying they can come back and ask for more money, I don't think so, normally everything would be settled at the time). The scratches, etc. are unimportant, the important thing to emphasize is that at the time it was agreed that it was paid in full -- hopefully your paperwork shows that. Be sure to send it registered, return receipt requested, so you get back proof, they received your letter. Also -- how can a finance company charge you for exceesive wear and tear? Usually the dealership may do that and you settle it at the time, or they send you a bill.

It is very important to do it in writing, because if you don't respond, regardless that you are on the right, they can ruin your credit record and it's nearly impossible to fix it.

Years ago, I had a dispute a bit similar to yours -- it was for something under $100, and it was definitely not about the money (not about a car, but about money I didn't owe) and in the meantime they just turned around gave it to a collection agency, who put it on my credit record, I ended up paying it twice, once to them, once to the collection agency, just to try to get it off my credit record, and it stayed on my credit report for a while, they wouldn't remove it anyway. Nowadays, when they don't actually LOOK at your credit record, only your score, something trivial like that can pull down your credit score and it will cause you problems for years.

If they won't back off, after you send them your proof that you don't owe that money, much as you hate to do it, in the long run, it's cheaper to pay it, than to have them ruin your credit record on account of something like that.

This is not legal advice, I am not an attorney, this is just the "voice of experience" speaking, I just had a few hassles at various times myself.

Good luck and congratulations about the baby on the way.

[Always Right]

I am no lawyer and take this with a grain of salt, but I would write them back and tell them there was no excessive wear and tear and they did not meet their contractual obligations of informing you within 30-days of receipt of vehicle. Tell them you have no obligation to pay them the money and put the ball in their court. It will be up to them to prove these damages in court and they met all their contractual obligations to claim damages, which will cost them much more than $450 to do so. Of course if there were damages you caused to the vehicle and they did not have any obligation to inform you within 30 days, they could win and you might be obligated to pay their attorney's fees depending on the contract. But if what you say is true, you have little to worry about.

[Eric in the Ozarks]

I bought my son a 1991 V-6 5-speed Ranger in 1993. He's still got it at over 100,000 miles. No major problems.

[Eric in the Ozarks]

These people are just shaking the tree to see what falls off. Let them take you to court. Bet they don't.