I purchased a vehicle in May 2009. When I purchased my vehicle, I agreed to payments of roughly $344/month.
Soon after purchasing my vehicle, I received a letter from Lobel Financial asking for me to provide evidence of insurance. STAPLED to this letter, and with the SAME date as the letter on top, was an additional letter stating that since I did not provide adequate proof of insurance, they were instituting a waiver and increasing my payment to $412.34/per month.
I called Lobel and, after being hung up on twice, and placed on hold for over a 1/2 hour, I finally spoke to a representative who stated that I needed to fax a copy of my insurance agreement to their financial department and that everything would be fixed.
I faxed a copy of the requested insurance paperwork to their finance department, and also mailed a copy of the requested paperwork to them. I made my payment, on time, based on the contract I originally agreed to at the car dealership.
Come the next month, I again received a letter stating that I did not provide adequate insurance information, and that my payment was increased. I tried to call, but was discouraged after speaking to a representative who again told me to fax a copy of my paperwork to them. I called my insurance broker, who agreed to call them herself. My insurance broker called me back and told me that it had been taken care of, and that if they continued to try and bill me extra for waiving my insurance, to contact her, and that she would handle it. Apparently, Lobel requires a $500 deductible, but I have a $1,000 deductible. However, according to my insurance broker, in the State of California, the finance company cannot increase my payment based on this fact.
Received my 3rd bill today. Again, Lobel Financial has charged me $412.34 as opposed to the original $344.xx I originally agreed to.
After reading several horror stories regarding their propensity to repossess a car within two weeks of payments being late, and being that I have only been paying $350/month, I've become quite anxious.
I have contacted Lobel Financial, but only got an answering machine. I explained that they will fix the problem immediately or I will take further action against them.
My next move; Monday I will be contacting a Lawyer, as well as sending a letter to the State of California Department of Consumer Affairs. I'm tired of the B.S. this company is allowed to get away with, I'm the individual that's going to take this to whatever degree I can legally take it to, to teach Lobel Financial a little bit about Ethics and responsibility.
I have made the payments that I originally agreed to, on time. I will not be taken advantage of by an unethical, exploitative, finance company, such as Lobel Financial.