• Report: #284478

Complaint Review: Credit Acceptance Corporation

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  • Submitted: Mon, November 12, 2007
  • Updated: Wed, May 14, 2014

  • Reported By:ALEXANDRIA Louisiana
Credit Acceptance Corporation
2011 Choctaw Drive Alexandria, Louisiana U.S.A.

Credit Acceptance Corporation Fraudulent and unethical business practices by Credit Acceptance and the dealer Alexandria Louisiana

*General Comment: Fraudulant documents sent

*UPDATE Employee: Why blame the finance company?

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I was recently contacted by a local dealership after filling out an online credit application. The salesman was very optimistic that he could get an auto loan approved for me even with my poor credit.

After a couple days talking on the phone, my husband & I drove the car. We thought it was nice and were ready to give our down payment and sign the paperwork. My husband asked to see the figures and that's when we found out the sticker price had been increased by $1400 and that we had to agree to a non-negotional warranty for @2000. We knew there would be high interest which is our fault for our credit score, but have never heard of raising the price. My husband remembered the name of the lender and did some research.

It seems the lender trains the dealer how to make a extra profit off of people who are already down. Every applicant is approved, that is why my salesman was so optimistic. There are several options to their plan. One is called a Portfolio program - this is where the dealer & lender share the principal & interest of every payment + the dealer receives an upfront profit. Another one is called the Purchase program - this is where the dealer receives a higher upfront profit today (is why our price was raised) and don't share monthly payments collected. Also the warranty we found out is optional. We found so many discrepancies & caught them in several lies.

Thank God we smelled a rat (actually several) and did not close the deal. EVERYONE, please do research before making such a decision. For people with poor credit, we are ready to jump right in because we've had so much rejection. I know I was, but thanks to my husband he brought me to my senses

Ripoffsick
ALEXANDRIA, Louisiana
U.S.A.

This report was posted on Ripoff Report on 11/12/2007 08:51 PM and is a permanent record located here: http://www.ripoffreport.com/r/Credit-Acceptance-Corporation/Alexandria-Louisiana-71301/Credit-Acceptance-Corporation-Fraudulent-and-unethical-business-practices-by-Credit-Accept-284478. 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:
0Author 2Consumer 0Employee/Owner
Updates & Rebuttals

#1 General Comment

Fraudulant documents sent

AUTHOR: Kim - ()

 Unfortuantly I had the very same thing happen to me from North Auto Brokers in Georgia.I went through the same thing you just described and was also told I had to buy a warrenty that cost 2400 in order for me to be able to get finacing.

This drew a Red Flag I never heard of such a thing.When it came time to do the paperwork, I noticed the price of the vehicle was elavated from 8999.00, which was the price they had the auto listed for to 10,999.

i also continued to read in the contract that the warrenty was a option and did not have to be purchased in order to purchase the car, and that elavating the price of the car was not allowed

.I scratched throuh the price and put my intials and wrote in 8999,00 since this was the price I agreed to purchase the vehicle not 10,999 which was what he had written down.When confronted his explaination was this was the price I had to pay since I was financing the car instead of paying cash for it.I stated that the contract says that the dealership is not allowed to change the sales price of the vehicle and he said he had to make his money somehow.

 I also skratched throuh the warrenty he said I had to purchase in order to get financing .I also confronted him because the contract reads that this was an option .His response was that I had to have this because the finance company insisted so I lined through on the cotract where it said it was an option .

It was at the end of the day amd they were closing.  I told him I was buying my car today because I had to return my rental car and there was another car I liked at another dealership that I would get if we could not fix this paperwork.

 He said he would have to get approved the places I disagreed with and he would send me a copy of the corrections once they got it approved.We were given the keys and the auto and left.The very next day I called Credit Acceptance and asked if  I had to buy a warrenty in ordcr to get financed ? They responded by saying no.

I immediately called the broker and asked when I could get my copy of the contract with all the corrections.He stated that the contract had not been approved yet and that he was having problems with the paperwork and I may have to return the vehicle.

After a few days pass I phone the salesman again and he never returns my call so I phoned Credit Acceptance and discovered that the application was approved.I asked credit acceptance if I could please et a copy of the documents and they said they would send them.

 I have to call them back because I never get a copy of the contract and also discover on my credit file that the line of creit states 15999 which concerned me since the car was 8999,00 and I put down 3000,00. I call again and ask for a copy and tell them I dont have a contract because we never reached a mutual consent.

It seems the dealership sent a fraudulent contract for the car that had fake signatures  to Credit Acceptance.Well after 3 months of waiting for the fraud and litagation dept of Credit Acceptance to resolve the matter.I recieve the Settlement Agreement to resolve the contract since there was really never one in the first place and return the collateral the vehicle back to Credit Acceptance.

 During this time of them deciding on how they were going to handle this they froze the account so there was no activity durin this time ,however I discover that the month they decide to resolve everything they report negative credit on my file late 60 days .

They told me that this would not happen and they did it anyway.What makes this worse is I couldnt make a payment if I wanted to becuase the account was froze during the investigation period.

I was furious and phoned the lady from the litagation dept I have been dealing with and she tells me once I sign the release they will remove everything from the credit bureau. UNBELEIVABLE!

I finally get the documents releasing everyone from  this nighmare .However, they do not mention anything about the 3000 dollars I put down as a down payment.When confronted in an email I was told I would have to take it up with the dealership.

They also reported to the credit dept that I was delinquent 60 days on my credit after tellig me this would not happen since my account was froze.When confronted about this they said after I sign the release they would have it removed from my credit.

So I'm now going through this crazy battle that has now affected ny credit which will probably take for ever to fix when this is finally said and done and trying to get my down payment back so I can get another vehicle.` 

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#2 UPDATE Employee

Why blame the finance company?

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

Whoa!
Slow down, nice lady!

How do you make the leap that a used car salesman gave you incorrect information to the assumption that Credit Acceptance trains dealers on how to raise their prices?
Do you think dealers need Credit Acceptance to train them on THAT? Really?

Credit Acceptance offers several programs to dealers, just as most vendors do with the customers they serve.
None of those programs in any way requires the dealer to raise the price of the car.

Car dealerships sell cars. Lenders sell money.
Virtually every lender working with high-risk clients adjusts the price (interest rate) to accommodate the increased risk the lender faces when they lend to a high-risk (low scoring) customer.

This practice is legal, accepted and acceptable as long as it is applied fairly across the spectrum of clients. In the case of Credit Acceptance; it is applied fairly.

If the dealer is raising the price of the car, then that is on HIM, not Credit Acceptance or any of the lenders this dealer works with.

If the dealer you visited was not upfront or honest, then don't deal with them, but don't blame the finance company.
Did you know that most dealers, from the smallest Mom and Pop outfit to the bigger branded stores, work with many lenders; not just one.

By your reasoning; all the lenders that this dealer works with are out to rip somebody off. What if this dealer also offers products available through your very own bank?
Doesn't that make them part of this vast conspiracy?
Shouldn't you and the rest of the villagers grab some pitchforks and head on down to your local branch for good old fashioned tar and feather party?
Since they probably work with the same dealer that Credit Acceptance does, doesn't that mean that they are evil as well?

If the guy that offered to sell his house to you raised the price and lied about it being built on a sinkhole, will you blame the mortgage company that offered to lend you the money to buy it?


Do you blame Budwiser because they are sold in a bar that charges $8 for a bottle of beer?
Do you think Budwiser is out there telling bar owners how to set (or raise) their prices, or telling them they must set a two-drink minimum?

It is paranoid bordering on the absurd to suggest that Credit Acceptance trains dealers to adjust their prices. Credit Acceptance could not care less about the price of the car, the color of the car, the options on the car, whatever..

They care that a reasonable and prudent person signed a contract to borrow money and then pay it back according to the terms and conditions of that contract.
It is up to the customer to know what they are buying and from whom. When that decision is made; Credit Acceptance will loan them the money.
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