This week I saw two clients who were victims of very different lending practices but both were clearly predatory.
The first was a young lady who had pawned her engagement ring to pay for her school expenses but used a no-name pawn shop. On the receipt she received from the pawn shop her number was listed as an Orlando (or 407) area code which was not her number. When she tried to redeem it about 35 days later the shop had already melted the ring and her $2500.00 was history. She only received $300.00. Clearly a simple error like a wrong telephone number cost this lady her engagement ring.
The other scenario unfortunately is all too common and I have seen this play out many times . You want to buy a car and you are approached by the usual gang of wolves at the car dealership. Everything is going great, they tell you your credit is good and you can drive the car home in a few hours. In this particular case my clients somehow were talked into financing an RV that cost $80,000. They traded in a fifth wheel that they owed the bank $27,000 which was clearly upside down. (they owed more on the 5th wheel than it could be sold for.) The clients were told they could go home and could take possession of the RV in a few days. What happened next is a classical financing nightmare for many people. The dealerships have a kick back scheme whereby a bank gives money to the dealership in order to get the loan. This collusion is not disclosed to the public other than the financing guy at the dealership tell you he will shop around for the best loan based on your credit .
In this case my poor clients ended up financing an $80,000 Rv, had the balance of the loan with the 5th wheel added in, so the grand total was $128,000! As soon as they got home they realized they had made a big mistake and the next morning they went to the dealership believing that there was a 3 day period in which they could cancel the loan.
In Florida there is no 3 day rescission period. In fact it says in big letters on the purchase agreement that as soon as you sign the paperwork the car is yours subject to the financing. The dealership already knows that they can get the vehicle financed. Unfortunately the only sure way out of this bad deal is to file a chapter 7 bankruptcy which my clients decided to do yesterday.
If you have a predatory loan please call the Ocala bankruptcy office of Laurence A Steel.