On December 26th 2008 we took our paperwork to the "preferred" dealer Road loans supplied, picked out and put a down payment on a SUV. We were told the dealer would contact Road Loans to make sure everything was a go and we could pick the car up on Monday.
Monday morning the dealer calls us to inform us Road Loans is charging a $1950.00 "loan acquisition fee " we would also have to pay. I called Road Loans and inquired about this fee as it wasn't stated in any of the paperwork. I was told yes, they charge the dealer a fee and the dealer needs to pay it "somehow".
I requested and given an increase in our loan amount to cover the cost with no problem. I called the dealer to tell them we were going to have to go with the other car we looked at so we would be just at the max of our loan. The call Road Loans back, were told everything with the loan is fine. We pick up the car that night.
December 15th a Road Loans rep calls to go over the loan, tells me the amount and when the first payment is due. Asked if I still wanted the loan knowing about the loan acquisition fee. I told the rep yes since I have the car and have been driving it.
January 26th I called the dealer to find out if my plates have come in because my temp expires in 2 days. I was then informed that Road Loans is refusing funding on the loan because I know about the loan acquisition fee. The dealer violated their agreement with Road Loans by informing me of the fee. After 2 days of fighting with them, they still refuse to fund the loan.
BEWARE OF THIS COMPANY!!! This fee is illegal and they know it. They claim the dealer is "paying" it. The dealer told me flat out, it is hidden in the price of the car.
New Brunswick, New Jersey