• Report: #858830

Complaint Review: CNAC Finance Company

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  • Submitted: Sat, March 24, 2012
  • Updated: Mon, April 02, 2012

  • Reported By: Errika — lynchburg Virginia United States of America
CNAC Finance Company
2828 Candlers Mountain Rd Lynchburg, Virginia United States of America

CNAC Finance Company J.D Byrider CNAC are trying to leave me hanging! Lynchburg, Virginia

*Author of original report: Thank you Karl!

*Consumer Comment: I Know You're A Bit Gun-Shy About CNAC...But

*Author of original report: I'd just like to say

*Consumer Comment: Back Years Ago

*Author of original report: Just to clarify

*Consumer Comment: Why sign another loan with CNAC?

*Consumer Comment: Why sign another loan with CNAC?

*Consumer Comment: This is an interesting scenario

*Consumer Comment: The Reason CNAC is Fighting With Insurance....

*Author of original report: maybe not where you live!

*Consumer Comment: Not exactly

*Author of original report: Ask before you assume!

*Consumer Comment: The Facts Are.....

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My daughter wrecked my Ford Focus a few days ago & the insurance adjuster labeled it as a total-loss. So a CNAC Rep literally argues with the insurance company Rep saying that they can fix the car. Keep in mind that the car has severe frontal damage! Now with the fact that I'm financing the car through CNAC means they are the lien holder, so the insurance company will send the check to them for the damage.
I called CNAC to ask If they can put my in another car of the same value as my Focus so I can continue on with my payments as normal. Well I wad told that they won't do that, but what they will allow me to do is finance another car through them. Really!!! Are they f** that*king serious! So they really think that I would purchase another car with them which is really over priced, not to mention the outrageous finance charges plus the responsibility of paying off the balance of the Focus. They're crazy!
They acting like I'm asking them to give me a Benz or some other high end car! They want to fix my car & give it back to me while expecting me to continue paying them! I personally will not go out & purchase a car knowing that it has be wrecked before due to the fact that there are usually some hidden problems with them. I can't take a chance on possibly getting hurt or losing my life because they failed to agree with the insurance company on considering it a total-loss. They're unethical & just being a**holes about the whole situation!

This report was posted on Ripoff Report on 03/24/2012 03:15 PM and is a permanent record located here: http://www.ripoffreport.com/r/CNAC-Finance-Company/Lynchburg-Virginia-24502/CNAC-Finance-Company-JD-Byrider-CNAC-are-trying-to-leave-me-hanging-Lynchburg-Virginia-858830. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
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#1 Author of original report

Thank you Karl!

AUTHOR: Errika - (United States of America)

That was some very insightful information! I do believe that I have learner a lot from all of you whom placed comments on here. This is the quality info that will help me with any problems that I may go through in life involving credit. Thank you everyone you have been so helpful!
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#2 Consumer Comment

I Know You're A Bit Gun-Shy About CNAC...But

AUTHOR: Jim S - (United States of America)

it might be the best thing for establishing the credit you need.  See, your credit score is made up of much more than just paying your bills on time - paying your bills on time only makes up 35% of your FICO credit score, and other measuring sticks like Vanguard weigh on-time payments even less.  Since 30% of your credit score is your total debt, 10% of your score is applying for new credit, and 15% is the length of your credit history, 55% of your credit score could be adversely affected by shopping around for a new loan.  (BTW the remaining 10% is based on different types of credit) 

Here's how:

1.  Each time someone runs a credit report for you in association with buying a new car, you get what's called a 'hard inquiry' on your credit report.  Each hard inquiry drops your credit score by 5-10 points.  Go to 3-4 dealerships, and you see what can happen (a 'soft inquiry' is caused, for example, when someone runs your credit report to see if you're worthy of renting an apartment to... and soft inquiries don't reduce your credit score)

2.  Each dealer is going to see the CNAC debt and will consider whether you can handle that debt AND the proposed debt your planning to take on.  They may say, "sure we'll loan you money, but it's going to cost you even more than the loan you got at CNAC."  When that loan finalizes, your credit may be at a point where if there is an emergency, you may have a problem.

The reason I said it would be better to go with CNAC is that it would minimize the burden on your credit score.  By going with them once more, they're (1) not going to create hard inquiries on your credit report, (2) going to wipe out your old debt by showing it as paid in full, and replace it with new debt, and (3) going to provide you some level of positive credit history by showing the old debt as paid in full.  These three events would not lower your credit score to the extent shopping around...would.

I teach this stuff part-time to people who have bad credit...and am glad you gleaned onto what Karl said, because he's 100% right!!  Having said that, you have to do what is right for you....  Best of luck to you....

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#3 Author of original report

I'd just like to say

AUTHOR: Errika - (United States of America)

Thank you Karl, that is some great advice! This has been one of heck of a lesson for me & I don't plan on making this mistake ever again in life. I really do appreciate the comments that some of you posted.
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#4 Consumer Comment

Back Years Ago

AUTHOR: Karl - (U.S.A.)

There were no such things as credit cards. People either paid everything with cash or ran local accounts with grocery stores and other local businesses -you paid on Friday when you got a paycheck. When you bought a house you either paid cash or stretched  payments over 5 years or so. Now there are credit bureaus and unfortunately everyone needs to establish a good credit history by proving that one pays bills on time. This can be done by holding a credit card - perhaps one from your local credit union which has no annual fee -and making small purchases with it, paying your balance in full at the end of each billing period.

Without a credit history it is difficult to deal with any car dealer other than a sub prime one for financing even though you don't fit the profile of their normal customer. It is also virtually impossible to travel without taking bundles of cash with you. You can't even make airline reservations on an airline web site.

My advice to you is to establish a credit history. If you have adequate cash and want to purchase  (not finance) a dependable used car deal with a new car dealer's used car manager or buy from a private owner where you can review the service history of the car. Once you have a good credit history in a year or so you can avoid sub prime dealers. If you need a loan for a car next time find out the price of the car you want and request a loan from your credit union or local bank. Avoid the "buy here pay here" car lots.


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#5 Author of original report

Just to clarify

AUTHOR: Errika - (United States of America)

Jim S., just to clarify something with you. I said that "I had just recently found out about gap insurance!", so I was not asking neither party to cover me after the accident. I was simply trying to find out more about it & why I was not informed of such coverage. Now when I wrote "So they really think that I would purchase another car with them which is really over priced, not to mention the outrageous finance charges plus the responsibility of paying off the balance of the Focus. They're crazy!" That was not to say that I wouldn't keep my responsibility to pay off the balance. I know that I owe it, so I will without a doubt uphold my promise to pay what I owe. I was simply stating that it would be ridiculous to enter into another agreement with them when I can just finish off the one I have & be able to go elsewhere to buy another car. Steve, the insurance wanted to give $3570 leaving a balance of $7000. Thank you for understanding my situation & not trying to judge me. Sarah P, thank you for understanding where I coming from with this situation.
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#6 Consumer Comment

Why sign another loan with CNAC?

AUTHOR: sarah p - (United States of America)

How do you get that the writer would not be able to get a loan elsewhere?If CNAC payments have been made on time they will be reported to credit bureaus thus showing positive history. Why would anyone choose to sign for another high interest loan? Those places are to build or repair credit not to get repeat customers. I am not saying to not pay the difference if there is one. After all the bad things I've read about CNAC and JD Byrider I'd run like h**l. With identity theft, scamming companies that falsely report, people with no credit, medical bills, or someone that has made a mistake, etc it is not wise to label everyone as a deadbeat without knowing the facts. Find another place to buy a car and make sure you get the most out of the insurance company possible. I wouldnt want the same car back either and nobody else will be interested in buying it if you try to sell it later.
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#7 Consumer Comment

Why sign another loan with CNAC?

AUTHOR: sarah p - (United States of America)

How do you get that the writer would not be able to get a loan elsewhere?If CNAC payments have been made on time they will be reported to credit bureaus thus showing positive history. Why would anyone choose to sign for another high interest loan? Those places are to build or repair credit not to get repeat customers. I am not saying to not pay the difference if there is one. After all the bad things I've read about CNAC and JD Byrider I'd run like hell. With identity theft, scamming companies that falsely report, people with no credit, medical bills, or someone that has made a mistake, etc it is not wise to label everyone as a deadbeat without knowing the facts. Find another place to buy a car and make sure you get the most out of the insurance company possible. I wouldnt want the same car back either and nobody else will be interested in buying it if you try to sell it later.
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#8 Consumer Comment

This is an interesting scenario

AUTHOR: Steve - (USA)

So how much was the insurance company willing to pay for the total loss?  And how much more is your balance than the amount the insurance company is paying? Did the lienholder ask them to pay the same amount, but just not mark it as a total loss? I can only think of 2 reasons why they would possibly do that:

1) They are worried you will not pay the amount you owe after the insurance check, and that there is a better chance of you paying off your entire loan as before if you have the car. In other words, they do not want to own unsecured debt. 

2) They just want to keep the loan, as that is how they make money.

The above 2 are just guesses; anyone else have any ideas.

Either way, this does sound like a bit of a ripoff, and I am surprised it is legal. I mean, it sounds really, really wrong; you actually ARE the owner of the car; the lender is just a lien holder (just as I own my house, even though I have a mortgage). It really seems like you should be the one to decide if you want to keep the car or eat the gap. 
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#9 Consumer Comment

The Reason CNAC is Fighting With Insurance....

AUTHOR: Jim S - (United States of America)

is that the amount they're going to get from the insurance company won't pay off the balance of your loan, which means you're going to have to cough up the difference.  The likelihood (in general) that CNAC is going to get another dime from you is going to be slim unless you decide to purchase another car from a dealer and use CNAC to finance it.  In that way, they can apply the outstanding portion of your loan to the new car.  The statement as to why you can't get GAP insurance is incorrect - you are not eligible for GAP insurance because your opportunity to purchase the policy happens at the outset when you buy the car, not when the car is already smashed down to sheet metal.

Your story actually is making CNAC out to be a company looking out for you; they want the car fixed because they want you to both drive a car and continue making payments.  Otherwise, you're stuck making payments on a car you no longer have.  I mean if I were the financing company, I would be fighting the insurance company as well.  You indicate your intent to be a deadbeat when you tell us "So they really think that I would purchase another car with them which is really over priced, not to mention the outrageous finance charges plus the responsibility of paying off the balance of the Focus. They're crazy!" REALLY??  The truth is CNAC is doing you the biggest favor in the world.  You are not going to be able to secure any financing of another car by any other means except to go through CNAC.  You already have less than stellar credit, and no other financing company is going to provide you a loan given the amount of debt you already seem to have racked up.  CNAC is your only recourse - I suggest you take them up on their offer.

If there is anyone acting like an a-hole (your description) is the insurance company for considering your car a total loss.  The insurance company doesn't give a d**n about you or what you need to drive - they are just looking out for their bottom line, which is a lot better than CNAC's bottom line.  Your car will run just fine...with a whole new front end, suspension, etc....  At the end of the day, you aren't taking the Focus out to sell the d**n thing.  Your using it for transportation and if the body shop does as it's supposed to do, the car will run just as good, if not better, than before.  Call your insurance broker and tell them NOT to total the car and if they do, tell them you'll find another broker.



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#10 Author of original report

maybe not where you live!

AUTHOR: Errika - (United States of America)

Robert, when I said "Everything I Own" that means which is Paid off with no balance! The fact that I'm still paying for the car does not mean that I own it! It is still considered CNAC's property until its paid for, that is why you don't receive the title until your done paying for it!
I do Not think the accident should get me out of paying the balance of the car & they don't offer gap insurance either they claim I needed to get that from the insurance company. Now I just recently found out about gap insurance after the accident! anyway when I asked the insurance company did they offer gap insurance, they said they do but not for the year of my car which was a 2004. They said The the dealership knew this therefore should have been offered by them. Now as for your claim that NO finance company would agree to swap out cars is not exactly true! I know this because several people I know have had this done before. The difference is they were not dealing with J.D Byrider! So your statement just might be true where you live , but here its different. I guess now I can consider this whole fiasco a lesson learner & do as I have done in the past with purchasing me another car with CASH only!
Robert, at least I can respect your comment! Unlike Jim's comment, you did not assume that I was some kind of deadbeat or something.
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#11 Consumer Comment

Not exactly

AUTHOR: Robert - (U.S.A.)

Everything I own have been PAID for with CASH by me & without the help of anybody else!
-
That's not exactly true is it?  Because if you did pay for EVERYTHING in cash you would not be dealing with a Sub-Prime lender now would you?

But back to your original report.  The label "total loss" does not always mean it is unrepairable.  It refers to the amount of damage compared to the estimated cost of repair.  If the estimate to repair is one penny over the value of the car the insurance company will consider it a total loss.  You seem to think that a car being labeled as a "total loss" gets you out of the loan.  The fact is that the Insurance company will just give you what the value of it is at the time of the accident. 

So if for example the car was worth $5,000 and you owe $7,000 on the loan.  The insurance company is going to pay $5,000 and unless you have some sort of GAP insurance you will be responsible for the remaining $2,000.   This is NOT CNAC specific and you would be in the same situation with any lender.  Because cars are not investments, they will always loose value and with most loans you are going to owe more than it is worth(upside down) for a majority of the loan. 

Also, what you are asking, for the finance company just "swap out" your car is not only unrealistic.  It is something that NO finance company would agree to. 



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#12 Author of original report

Ask before you assume!

AUTHOR: Errika - (United States of America)

Look here Jim! I know that you more than likely get your rocks off by coming on sites like this just to think your doing the world a favor by trying to down people whom happen to get caught up in bad situations. Well lets just say I am NOT the one! Before you go assuming that I don't pay what I owe, you should ask me why I chose to buy a car from a subprime lender in the first place. Since you didn't then let me tell you anyway so you & people like you can learn not to judge without facts! My reasons for going to a subprime lender was primarily because I had a lack of revolving accounts due to the fact that I'd rather pay cash instead of using plastic. I don't dabble with the credit card industry because I know cash gets the job done quicker, easier & hassle-free! Secondly I didn't want to burden anyone nor myself with getting someone to co-sign for me. Everything I own have been PAID for with CASH by me & without the help of anybody else! Why start now! I've always PAID my bills BEFORE its due date to save myself from the headache of having to RUSH around making sure everything gets paid promptly! So you see why you need to ask the person how they got into certain situations before you go assuming the worst in them, Jim! Judging a book by its cover have made many people eat their own words solely because people such as yourself don't always know what the hell they're talking about! Your probably the type of person whom jumps in at the a** end of a conversation while give your 2 & people are looking you like what the hell are you talking about! Just for the record, "ASSUMING ONLY MAKES AN A** OUT OF YOU & NOT ME! Food for thought!
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#13 Consumer Comment

The Facts Are.....

AUTHOR: Jim - (USA)

The "overprice" of the car was what YOU decided to accept. If YOU didn't like the price, then YOU shouldn't have made the purchase. They are a SUBPRIME lender, which means they finance people who have a reputation for not paying their bills on time. YOU have such a reputation. Subprime lenders finance at higher APR's. YOU are with a subprime lender because YOU put yourself there. When the car is totalled, insurance covers the value of the car one second before the collision. You owe more than its worth. Unless you have some sort of "gap" insurance, you are on the hook for the deficiency. Nothing illegal, immoral or unethical about that...it happens every day. And no, I don't work for them.
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