Business Scams and taking advantage of people. Car/Insurance problems?

Question

I am in desperate need for an answer here because I am running out of time. At the beginning of this year my husband was involved in a car accident. The car was totalled. We were still making payments on the car as well had a another yr to go. In our monthly payments we were supposed to have comp and collision insurance for 18 months of the loan and we were paying for this extra coverage that the finance bank was giving us in our monthly payments through western general. I also found a paper that showed we had gap insurance for the full 2 yrs of the loan. Come to find out, we never had this insurance coverage at all. We only had our libility through another insurance company. The owner of the finance company got weird when i told him that western general could not find a policy for us so he said he would contact them. he offered to place us in another car and take the money we would have used for the car payment and put it towards the other car. we ended up putting down 1000..and said that he would take care of the other car. the car he ended up placing us in had PREVIOUSLY been in an accident and was fixed (very poorly) he did not tell us this right in the beginning but waited a week later when we agreed to come back and put down the remaining down payment. Unfortunally we had no choice...we needed a car are credit isnt that great and we needed transportation...and i knew that we really didnt have insurance...even though they kept telling us we did. we took the other car. Few months later when i was still dealing with this whole problem i went back to the owner and told him that the insurance company was telling me that we did not have a policy at all that one was never even established for us. he said that wasnt true...yaddy yah but not to worry cuz he took care of the loan.
so then something occured to me.
we are being financed for a salvage car just a little over 12,000 which i told them was a ridiculious amount in the beginning but of course they made up their story as to why they could charge that. which he said he took off 2000 for us.... whoopie doo...it is possible that he attached the balance of the other cars loan to this car without telling us? and if so is that fraud and can i legally sue him for money that should be owed to us as well as time and suffering for having to drive such a piece of crap car? if so do you know of anyone that i can take my case to? please help me here time is of the essence.

Additional Details
im 21 yrs old. i went in there by myself. they think im young and naive and maybe in some ways i was but thats why i kept going back and trying to get them to solve the problem. and they wouldnt. they kept telling me i am wrong when i know im not. we needed a car...we still have to get to work... and i thought wow this guy is really nice just letting us get another car through him....i guess that was dumb of me. he totally took advantage of me i feel.

AND when we signed for the car he placed us in. all he gave us was the contract to sign...he didnt give us anything else. no dmv papers or anything. nothing. we havent even signed anything reguarding the other car.

Anonymous · Accepted Answer

Most likely, he rolled the negative equity into the new loan.

Yep, you paid $12,000 for a $3,000 car.  Gap isn't going to cover that.

You keep going into bad deals.  This is YOUR CHOICE.  Either you don't understand, or you aren't paying attention, to what you keep agreeing to!  You SIGNED the loan, the loan paperwork CLEARLY would have indicated the rollover.

You're not getting them to solve the problem.  They aren't in BUSINESS to solve the problem.  They're in business to sell cars, at a huge markup - and they're doing that quite well. 

The only way you can have "insurance" for YOU, is if you buy it, from someone licensed to sell it.  Dealers aren't licensed to sell insurance - any "gap" coverage they offer, isn't insurance.  It's not regulated.  And it doesn't cover prior balances rolled into the loan, or taxes, or forced placement insurance, or title/registration fees.  Or late fees.

You have no case, I'm sorry to say - this has just been a very, very expensive lesson for you.

DON'T BORROW MONEY TO BUY A CAR.  If you had bought a $1,000 junker, you wouldn't be in this mess.  You CANNOT borrow your way into prosperity.   Borrowing is what got you in here, borrowing without reading the details.  There's no easy way out, it's going to be hard work and several years of payments for something not worth what you paid for it.

If this "new car" hasn't been retitled to you, I think it's highly likely it belongs to someone else, and you'll NEVER see a title.  In other words, you're going to be paying on someone else's car.  



So the lessons here are:  

1.   buy your insurance from an insurance company, not a car dealer
2.  never sign anything until you've read every word, and understand it
3.  borrowing money is putting yourself into slavery for the loan.

car253 · Answer

Contact the Department of Insurance or Insurance Commissioner in your state and file a complain ASAP.   What this guy did in saying he gave you insurance is illegal.   He (I am sure) has no insurance license to sell insurance.

Then also contact your local city officials to let him know what this guy did.

Next time, Do a carfax before you buy.   Don't deal with this idiot any more.    Call the bank that is doing the financing to see what this guy did.    And, call your DMV to see what the car registration looks like on the old car and the new one.

Then sue the car dealer in small claims court for everything you can.
People no matter who they are should not be taken advance of.   Also, put him on ripoff report.   I put those links below for you.

Last thing, you might want to repost your question under Cars and then click on Insurance and registration.

Good Luck.

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RE: Business Scams and taking advantage of people. Car/Insurance problems?

hulmes · Answer

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Anonymous · Answer

Wow! I am sorry to hear that.

I use Landa Insurance. That is the company my parents use.

Maybe you can get some advice from them. Talk to Bob in Dallas. He always helps me when I have a question.

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Business Scams and taking advantage of people. Car/Insurance problems?

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