Unbelievable Car Dealership Deals

Car dealerships often advertise “guaranteed credit approvals” and “same day financing”. In the cases where it sounds like it is too good to be true, it usually is.

These unbelievable deals sometimes result in deceptive sales practices, leaving you in a worse position than you were in before you visited their lot.

Common Auto Finance Fraud Cases We See

There are a few different kinds of auto finance fraud cases. If you have experienced any of the below, you may have a case:

Yo-Yo Scams

In a yo-yo scam, the dealership will inform you that you have been approved for financing of a vehicle and give you the vehicle to take home. The dealership will later ask you to return back with your vehicle – sometimes by telling you that your financing has fallen through or that you need to sign more papers. If you return, the dealership may demand that you pay higher fees, more payments or a higher down payment in order to keep the car. But if you refuse, they will take the vehicle from you.  This “bait and switch” is referred to as yo-yo financing.  If you have had your vehicle taken from you by a dealer or have been asked to return to the dealership with your car, you may be a victim of a yo-yo scam.

Discounted Fees

In order to gain extra profits, some dealerships pass on fees that they pay to finance companies and then hide these fees in the contract. Car dealers must disclose all fees to you and include them in their Truth In Lending Act disclosures.  If you have paid over two to three times the amount of the sticker price of the vehicle, you may be a victim of a discount fee scam.

Add-On Fees

Car dealers often try to increase their profits by telling consumers that they must buy add-on products and services in order to get financing. These additional costs include, but are not limited to: VIN etching; rust protection; credit life insurance and gap insurance.  If you have been told that you must buy one of these products or services, you may be a victim of dealer fraud.

How Can Lyngklip & Associates Help Me?

Yo-yo scams, discount fees and add-on scams are illegal under state financing laws. Victims of auto fraud financing may be able to recover the illegal fees and other damages. In some cases, settlements for our clients have exceeded $100,000.

How Much Are Your Fees?

Our clients do not pay out of pocket for fees and pay nothing unless we recover on their behalf.  Clients can contact our office after completing the checklist below.

We also pay referral fees to referring attorneys.

Let’s See If We Can Help You!

This information is used for us to gauge where you are in the process so we can better help you through the process.

    Remove your belongings from the vehicle, including all purchase documents.

    Document all communication with the dealership and any related finance companies.

    Gather any available sale documents, such as the installment sale contract, buyers order and dealer-provided documents.

    Obtain copies of your consumer reports from Experian, Equifax and TransUnion.

    Collect any rejection letters from the finance companies that were considering financing the deal.

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Auto Finance Fraud

In this important educational series, Michigan consumer law attorney Ian Lyngklip of Lyngklip & Associates discusses important considerations regarding Automobile Finance Fraud.

Understanding Credit Denial Letters

What information is in credit denial letters and how can it help you improve your credit score and credit repair? This video will help you learn how to read credit denial letters and use them to get free copies of your credit reports.

You can find more consumer credit information and tips on the Consumer Insider channel. There, Ian breaks down the ways that car dealers, credit bureaus, and debt collectors cheat consumers and violation the law.

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What Our Clients Are Saying

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Very understanding of your problems. I'm learning things about my rights that I never knew. I really appreciate and thank Lyngklip & Associates for their help and services and welcoming me to the family rate. Lyngklip & Associates is a 10 star well educated business.

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Mr. Lyngklip and Ms. Petrick are knowledgeable attorneys and work relentlessly to get results for you. I am very pleased with their hard work and communication during my case. I highly recommend this law group!

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Michigan Consumer Law helped me when I was having issues with the purchase of a vehicle. What happened to me was very unsettling. However, when I met with Ian and his team, they explained everything to me in layman’s terms and my anxiety was relieved knowing that I wasn’t going to be completely ripped off. I received a settlement and was happy with the end result. I am now working with Michigan Consumer Law on another case of mine, and would definitely recommend them to anyone.