TOYOTA & SCION of WHITTIER
14577 E. WHITTIER BLVD.
WHITTIER, CA 90605
-Frank Tavares - General Sales Manager
-Phil Moeser Finance Manager
Re: Demand letter for rescission based on fraud
February, 10, 2006
I am a first time car buyer, unsuspecting about the tricks and deception by car dealerships and auto lending companies in bilking customers of their hard earned money. I send this letter today to demand rescission based on duress, menace, and fraud.
The legal causes for rescinding a contract under California law are mistake, duress, menace, fraud, or undue influence (CC 1689 b-1).I hereby cancel this contract for fraud (Civil Code 1689 b-1) by sending this letter by fax, to Phil Moesser, Finance Manager, and Frank Tavares - General Sales Manager at Toyota & Scion of Whittier, (Fax # (562) 693-8523), and by letter, (with return receipt postage paid on February 10, 2006).
I returned the truck in accordance with the procedure provided under California Civil Code Section 1691, in the cases of Clanton v. Clanton and Weger v. Rocha, to 14577 E. Whittier Blvd. Whittier, CA 90605, pre-owned vehicle lot of Toyota & Scion of Whittier on February 09, 2006 at 7:50PM, signed in by Henry Jimenez, Sales & Leasing Consultant, Business Phone (562) 698-2591, Cell Phone (562) 464-1101. Truck returned in same condition. I purchased this 2000 Toyota 4Runner and signed a contract in good faith (first contract) on January 10,2005.
Adding insult to injury, I was called at my condo over the next three weeks, by Phil Moesser, dealer Finance Manager, who called me several times wanting me to come in to the dealership, again, to provide additional references. Phil also called my mom and best friend several times, while leaving more than eleven voice mail messages, all in a menacing tone and in a demanding manner.
On Tuesday, February 7, 2006 Phil Moesser called to tell me he has a good news in which is lowering the terms of the contract by one year while raising the APR. When I questioned Phil Moesser, he verbally harassed and threatened to take legal action on February 07, 2005, causing me undue duress, Phil tried several times to force me to sign the new contract (second contract) to lock in the higher APR.
Phil Moesser told me word-for-word, to either sign the contract or return the truck immediately. I discovered after examining the contract Phil Moesser faxed to me on February 7, 2006, that my APR is increased, thereby deceiving me.
Toyota of Whittier made several acts of deception as follows:
a) Fabrication a second contract of a five year of loan period with higher APR of 17.5% and higher payment of $389.41, instead of the first contract of six years $387.31 at 13.95%;
b) Service financing options included in the contract, thereby making an impression to a first time buyer like me that these options are necessary in buying a truck, like the Optional Service Contract for $2,200 and Guaranteed Auto Protection Plan for $600.
By research I have discovered I can rescind a contract for fraud as provided by California Civil Code Section 1689 (b).
I send this demand letter for rescission based on fraud.
1) On February 7, 2005, Phil Moesser - Finance Manager, called to offer me a lower different terms than the original contract so that I will be induced to keep the truck, instead of rescinding the original contract. Instead of making it right this time, the dealership made extra outrageous acts causing me undue duress, (threat and act of lawful detention).
2) This is an act of predatory lending, the original APR of 13.95%, and within three weeks, Finance Manager Phil Moesser tries to change and coerce me into signing a new contract with an APR of 17.95%.
3) Phil Moesser made excessive credit inquiries with other lending companies thereby hurting my credit score.
To reiterate, I cancel the contract for fraud and duress (Civil Code 1689 b-1). The retail installment sale contract also provided for the cancellation of the contract for legal causes such as fraud. This is embedded in the contract under the heading of THERE IS NO COOLING PERIOD, last sentence that states, After you sign below, you may only cancel this contract with the agreement of the seller of FOR LEGAL CAUSE, SUCH AS FRAUD (capitalized letters added for emphasis).
The first part provided for mutual rescission and the second part for unilateral rescission (Buyer's side). The legal causes for rescinding a contract under California law are mistake, duress, menace, fraud, or undue influence (CC 1689 b-1). This is so because consent to a contract must be free (CC 1565). A consent obtained through duress and fraud is not free (CC 1567), thereby making the contract legally voidable.This is about my sad experience at the hands of the unscrupulous Phil Moesser, Finance Manager and the unethical Toyota & Scion of Whittier, both of who knows about rescission rights of the buyer and rescission procedures, and is consumed by their corporate greed and disregarded California law as if they are above the law.
La Habra, California
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