Most people choose to finance the purchase of a car not because they want to impress people with a flashy ride they cannot afford but rather as a practical financial decision. With the amount of money that is sitting in your bank account, the most you can afford to pay full price for a car will get you an ancient vehicle of unknown history and condition, purchased from a stranger with whom you exchanged messages on Facebook Messenger When you buy a car from a reputable car dealership, the same amount of money gets you a monthly car payment instead of an endless string of repairs until the Facebook Messenger jalopy finally kicks the bucket and sends you back to social media to find a replacement. In a perfect world, your car loan would only require you to pay the principal on interest toward the portion of your car’s purchase price that was not covered by the down payment. Unfortunately, though, the auto loan industry is a hotbed of junk fees and hidden costs. If your car payment is burdened by lots of unnecessary upgrades and hidden fees, contact an Oakland lawsuits, collections, and creditor harassment lawyer.
Junk Fee Value Meets Gym Membership Convenience
The Consumer Financial Protection Bureau (CFPB) recently ordered Toyota Motor Credit to pay $60 million in fines. Approximately 80% of the fine will go to consumers as compensation for the unnecessary fees Toyota charged them in connection with their car loans; each of the eligible consumers will receive between $700 and $2,500 in reimbursement for the fees that Toyota unnecessarily made them pay.
These unnecessary fees were in the form of services that were officially optional but which, in practice, were very difficult to cancel; in essence, Toyota was borrowing a page from the playbook infamously used by gyms that make consumers clear numerous hurdles before canceling their memberships. These unnecessary services include Guaranteed Asset Protection insurance and Credit Life and Accidental Health Insurance. The former covers the difference if the car gets lost or stolen, and the consumer’s primary insurance is not enough to cover the associated financial losses. The second protects the consumer’s estate from creditor claims if the consumer dies before paying off the balance of the loan. Toyota also charged customers for Vehicle Service Agreements, which would cover the cost of some repairs not covered by the car’s original warranty.
Worst of all, Toyota set up a hotline that the CFPB says deliberately made it difficult for consumers to cancel unnecessary services. For example, customer service representatives at the hotline would keep trying to convince consumers to keep the services until the consumers said three times that they wanted to cancel them. Only then would the call center reps direct the consumers to fill out a written form to cancel the services.
Contact the Law Office of Melanie Tavare About Breaking Free From Junk Fees
A debt relief lawyer can help you if your car loan debt is financially burdensome. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a free case evaluation.
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