My sons girlfriend was so excited to get a new car for her birthday. That was last year! The dealer (Low Book Sales) arranged financing through Lobel Financial Corporation and their payments were $358 per month for a $6,000 car.
It has been about a year and suddenly Lobel Financial says the car is not fully insured, they add an extra $100 to the monthly payment and never send any information to them. A collections representative calls telling them they are suddenly behind on their payments, because the $100 added to the monthly amount, that they never told them about.
Proof of insurance was immediately sent to them from the insurance company as well as faxed directly to them by me. Normal monthly payments have always been made and there has never been a lapse in insurance. Speaking with a Lobel representative they tell us the Proof of Insurance was never received and the payments are behind because of the extra $100 that is still added to the monthly payment. Another copy of the proof of insurance is immediately faxed to them and verified while on the phone that receipt was received - then 2 days later the car is repossessed.
They refuse to tell where the car is going, saying it will take 1 week before that information will be made public. Also, they do not provide any documentation, there is no paperwork and no one will speak with us.
A google search of Lobel Financial Corp. suddenly brings to light this is a common scam and this practice is done on purpose. It seems Lobel will collect your payments, then create an insurance scam, reposes the car and sell it again .........