The Auto Loan Audit - Not Only To Avoid An Automobile Repo

Before you go through the pain and trauma of an automobile repo, or even a voluntary repo, the auto loan audit can be used to fight back and save your car, truck, SUV, boat, motorcycle, and even RV. In our current economy where work is slow, the repo man is as busy as ever. Even if the repossession of your auto happened up to one year ago, you can still seek remedy with an auto loan audit, which can uncover discrepancies, misrepresentation or fraud with the auto lender OR dealer. That's right, you can still fight back even if the vehicle was repossessed up to one year ago.

Most auto loans, up to an estimated 80%, have discrepancies, misrepresentation or even fraud in the loan documents. And quite frankly, there are a whole lot of raw deals going on out there. So no longer is an auto loan audit used solely to keep the automobile repo man away. Remedies can include getting your money back, modifying the loan, or even walking away free and clear, whether you are behind on car payments, or current.

Some lending violations may include inflated values, rewritten contracts, or even payment packing, a common practice in the auto industry to get customers to agree to purchase additional products, without disclosing the true impact on the monthly car payment. For example, the dealer may have misrepresented add-on products and told you that the purchase of a vehicle service contract, credit life and disability insurance, or a theft deterrent package would affect the interest rate. The finance manager may have used a line like, "The only way I could get the loan approved was with GAP insurance and a warranty." By law, no lender can require a customer to purchase these add-on products. While they could certainly serve a good purpose to the buyer, waiving these items should have no impact on the financing, and they should be offered strictly as optional products.

The Old "Can't Fund The Loan" Trick. After you drive the vehicle home, the dealer might call and claim difficulty in finding a lender to fund the loan. Then, they would require you to return the vehicle and renegotiate - sometimes without the option of getting all of your down payment or trade-in back. If you signed a binding contract, without any "pending bank approval" or similar language in the contract, they have no right to change the terms.

An auto loan audit examines any violation of Federal and State automobile repo law and laws governing vehicle lending practices, as well as the sales process and proper disclosure. Violations found during the audit review may prevent or even reverse an auto repossession or entitle the buyer to a refund or auto modification.

While there are many reputable car dealers and lenders, in any industry we have the good and the bad. Especially in this economy, where sales are slow and sales reps are hungry, we need to be even more diligent not to get the proverbial wool pulled over our eyes. What kind of add-on products have car dealers tried to sell you? Have you been forced to buy these products in order to get a better rate? Do you know someone who has been a victim of any of these practices? If so, forward this article, and fire away with your comments.

Ron Borch, with over ten years experience in the mortgage industry, is on a mission to save home & car owners from misrepresentation and fraudulent lending practices. http://www.firstchoicefamily.net