• Report: #903001

Complaint Review: DriveTime Inc.

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  • Submitted: Tue, June 26, 2012
  • Updated: Tue, July 17, 2012

  • Reported By: Oleo — Tavares Florida United States of America
DriveTime Inc.
4020 E indian School Road Poenix, Arizona United States of America

DriveTime Inc. Ugly Duckling Kars Fraudulent Disclosure of terms of contract. Poenix, Arizona

*Author of original report: DriveTime Inc. Ugly Duckling Kars Fraudulent Disclosure of terms of contract. Poenix, Arizona

*Consumer Comment: Quick simple estimate without a calculator

*Consumer Comment: Rules are very simple

*Consumer Comment: A few things..

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My daughter-in-law recently purchased  a 2003 Jeep Liberty from DriveTime which is not advertised as such but is a  Buy Here Pay Here (BHPH) organization. The contract she signed did not correctly disclose what she would be paying in total for the Jeep and most all of the totals of interest, amount of financing, were off by as much as $5,230.65.

The only disclosures that were correct was the bi-monthly payment and the interest rate which if totaled makes all the other disclosures wrong. Nowhere in the paperwork she signed is there any disclosure that she must pay additional
charges. The bottom line is she would be paying $28,842.32 for an auto which is valued at around $8,000.00 with 22.388% interest. That is; 277.33 payment X 104 payments. Until recently Truth in Lending requires most lenders to disclose most of the aspects of the loan/sale. Most buyers at the time of sale cant calculate compound Interest hence, Truth in Lending. However, looking at the regulations I see BHPH organizations somehow fell through the cracks and werent regulated. See; http://articles.latimes.com/2012/apr/21/business/la-fi-buy-here-suit-20120421  where specifically DriveTime and other BHPH organizations are being investigated by the U.S. Consumer Financial Protection Bureau-- article from the L. A. Times.

My question is, isnt this a fraudulent contract and even though BHPHs may not be regulated does this constitute fraud? If so, how expensive would it be to return the car and have this contract declared null and void? Researching
DriveTime on internet there are many, many complaints about all aspects of this organization and a good reasons for not wanting to stay in this contract. In my opinion everything about DriveTime is fraudulent.

This report was posted on Ripoff Report on 06/26/2012 08:36 AM and is a permanent record located here: http://www.ripoffreport.com/r/DriveTime-Inc/Poenix-Arizona-85018/DriveTime-Inc-Ugly-Duckling-Kars-Fraudulent-Disclosure-of-terms-of-contract-Poenix-Ariz-903001. 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:
1Author 3Consumer 0Employee/Owner
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#1 Author of original report

DriveTime Inc. Ugly Duckling Kars Fraudulent Disclosure of terms of contract. Poenix, Arizona

AUTHOR: Oleo - (United States of America)

Naah, Truth in Lending Requires the Total Financed amount to be correct. In my opinion this is out and out FRAUD. Total Interest was off also by about $4000. You must be from DriveTime or at least have that car dealer mentality so prevalent in this country today.
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#2 Consumer Comment

Quick simple estimate without a calculator

AUTHOR: coast - (USA)

Anyone with a sixth grade education knows that $277 X 100=$27700 so she must have known that she was agreeing to pay more than $27700. $250 X 4=$1000 so the quick simple estimate is $28700.

The 12-year old kid that mows my lawn knows that.
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#3 Consumer Comment

Rules are very simple

AUTHOR: The Outlaw Josey Wales - (United States of America)

 If you post here, be ready to get rebutt from the grandmaster of Rebutts
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#4 Consumer Comment

A few things..

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

The contract she signed did not correctly disclose what she would be paying in total for the Jeep and most all of the totals of interest, amount of financing, were off by as much as $5,230.65.
-
What method of calculation did they use for the Interest?  There are many types and while the standard is a Simple Interest Loan, most Sub-Prime lenders use other methods such as the Rule of 78's and other types that could increase the amount of interest.

The only disclosures that were correct was the bi-monthly payment and the interest rate which if totaled makes all the other disclosures wrong.

- So according to you she knew she was going to have a 22.388% Interest Rate and have to make bi-weekly payments of $277.33 and she didn't have a problem with it?

Then even if we take your claim that the total was off by $5,230.  That still means she was willing pay about $23,612 for a car that is valued at $8,000 according to you.  Just something to think about.

As for if you can get out of the loan..probably not.  But it may be to your advantage to spend a couple hundred dollars to have a lawyer look it over.  If it is invalid they could help you with getting the contract voided.  If the contract is legal your daughter has just learned a very expensive lesson.  To read everything she signs and to not sign anything until she fully understands and can verify it is correct.
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