blew a gasket on my E350 van. My engine was shut and blowing white smoke. One
mechanic said that I might as well junk the van.
I was in dire need of another van and hurriedly bought a used E350 from Landmark Ford in
Niles. The amount of the van just came up to $13,800.88 (sticker price of $12,950 +
taxes, fees documentations, license registration, etc.) + car warranty.
Ed Howell, finance manager said that I could get a 15% interest with $460.00/month
payment for 60 months and my first payment is May 5. I joked that the date is 4 days
after Thomas' birthday. No matter what I do, I can't reconcile paying $460.00 a month
with 15% interest. I always come up with 27%. The finance manager kept on insisting
that 15% is right. Am I being robbed blind? The online calculator shows $357.00/month.
The salesman, Frank Butnaru, asked us to sign another form because I'm supposed to be
the main buyer not Tom. They won't tell me the finance company, loan amount , total
finance charges, etc. The only copy I got was Vehicle Buyer Order, Premier Paint
Protection II with used car follow-up program, Odometer and vehicle registration
information. We were excited to take the van home. When we got home, I realized that
there were documents missing. I called Ed Howell right away and he said not to worry he'll
try to get us the best credit possible. Frank Butnaru was more concerned about getting lists
of 6 names, addresses and telephone numbers as my references than helping me get
copies of my loan. He said he didn't know about my loan. I called the sales manager and
he didn't answer the call. I spent sleepless nights from then on realizing that I've been
duped. I needed copies of my loan application.
When I checked my credit report , I found out that Ford Motor Credit Company claimed
$19,251.00 total with $468.+- monthly payment of 16%. They added $5,431 to the sales
price. I called Ed Howell and he said that those additions are taxes, warranty and others. I
told him that The $5,431.00 I could use to buy another car. He laughed. So, that's why he
figured $468 per month at the start because that's what he planned me to be in. I told him
that I don't want the warranty. It shouldn't amount to $5,431.00. That van was a used van
with 69,612 miles.
The finance manager said we could come in and sign paper to cancel the warranty. I
asked if my monthly payment would then be changed. He said "NO". I just have to pay
$468.00 for 55 months instead of 60.
I called Ford Motor Credit Company and this were the informations I got for the first time
today March 30, 2006. The finance manager filed a sales price of $15,418.55 (more than
$2,468.55 of the sticker price of $12,950. The he added $3,475 for warranty + the taxes and
license minus $500 down payment. So, I wound up owing $19,251. For Motor Credit
Company said that if there are any adjustments, they will put that at the end of the contract
and my monthly payment is still $468. Landmark Ford of Niles is not answering my call
anymore. It's tough to get ahead in this world.
I called Landmark Ford of Niles and talked to Ed Howell, the finance manager and asked
him why he filed the purchase price of the car to be $15,418.55 when the sticker price is
$12,950. He said all the information were not in front of him and he would like to explain
everything in person. I made an appointment next week, first week of April.
On April 3, 2006, I received by mail my copy for the first time of the loan contract from Ford
Motor Credit Company. My total loan amount is $19,242.88 (a change from the credit report
filed $19,251), 2 service contracts of $3,475 and $649.00. My APR is 15.8% not the 15%
promised by Ed Howell. I got that high % because my credit wasn't that good. I haven't
heard of a floating APR.
I have credit reports from 3 reporting agencies that prove that my credit is good and that I
don't deserve to be given a higher rate of interest for car loan.
town. The sales manager agreed that the price of the car should be $12,950 and not
$15,418.55. It seems like they might be willing to rectify the situation and save me $6,000
or more.
Thomas J. Gamble, my husband, was despondent. He said that we've been duped and
might have to eat the losses. I felt bad, too because I thought I was kinda smart. I
remember Ed just asked us to sign the loan sheets and they were later fed into the
computer with the figures all changed without our knowledge. No explanation about the
credit terms were given. We didn't sign a triplicate form of credit application. Actually, I
could superimpose any signature on any document by softwares I have. Maybe, that's what
they did. I was shocked and speechless.
I found out from the Better Business Bureau web site that Landmark Ford of Niles had 5
sales practice issues: Claims of alleged sales presentations made in person or by
telephone that contain misrepresentations of the product or service, high pressure
sales practices, failure to disclose key conditions of the offer, and verbal
representations not consistent with written contractual terms or agreements.
They were later resolved and Better Business Bureau gave Landmark Ford of Niles a clean
bill of health.
Landmark Ford violated a Federal Law -
1. CONSUMER CREDIT PROTECTION ACT OF 1968 - requires creditors to disclose effective
costs of financing to consumers.
2. FAIR CREDIT BILLING ACT
3. TRUTH IN LENDING ACT-requires that, before you sign the agreement, creditors give you
written disclosure of important term the credit agreements such as APR, total finance
charges, monthly payment amount, payment due dates, total amount being financed,
length of the credit agreement and any charges for late payment. The Federal Reserve
Board issued regulations and specified that consumers must receive Truth in Lending
forms to review the terms of the financing.
From AWARE WEB SITE:
Most dealers disclose to consumers that the finance rate they are offered may be
negotiable and that the dealership may receive a portion of the finance charge for extending
credit to the consumer.
http://www.consumeraffairs.com/automotive/il_landmark_ford.html
On April 6, 2006, I and Tom met with Ed Howell. I asked about copy of our loan contract
with Ford Motor Credit Company. He didn't have any. All he got was one copy and it looked
like that our signature were superimposed with carbon. He said he didn't know what
happened to the copy. So, up to this date Landmark Ford of Niles hasn't given us copy of
our loan contract with Ford Motor Credit Company.
I asked why how he came up with the price $15,418.55 and not the sticker price of $12,950.
He said that that's the amount added that is part of the GAP. What Gap? He said we
ordered gap vehicle protection and he added $2,468.55 to $12,950. I told him that we don't
want any gap of $649, $2,468 and car warranty of $3,475. We just want to get a loan for the
price of the van and necessary license, documentation, taxes, etc. which amount to
$13,800.88. I and Tom signed cancellation papers for the warranty. I hope we didn't sign
our lives away. I hope that Ford Motor Credit Company would not abet, that they would just
file in my credit report that I owe $13,800.88.
Larry Goldman, a sleazy mortgage broker, helped us get our money back from Ford Motor Company amounting to more than $6,000 but hustled us into getting a sub prime loan of more than 9% mortgage. I knew that was a bad loan so, after we close with Larry Goldman, we refinanced for a fixed mortgage of 7+%. After more than a year, mortgages were being foreclosed right and left because of sub-prime mortgages.
