Capitol Mazda Bate and Switch Auto Loans San Jose California

I secured an auto loan with Capitol One before finding the car I wanted. I walked in to Capitol Mazda in San Jose on July 2, 2014 without the blank check that was coming the next day.  I discussed getting the car the next day but they used pressure tactics to secure the car that day and come back the next day with my blank check from Capitol One. I reluctantly allowed them to run my credit report to find a better loan, as well, and this added to my nightmare. 

I was finishing up the purchase with the finance department (Jaime), and he had me sign a cancelation contract so I could replace the Mazda service contract with my own loan the next day. The next day I called to make sure Jaime was in to finish the purchase with my own loan. I was told he wasn't in and spoke to the Finance manager. She informed me Jaime had gotten me an even better loan and there was no need to come in. The loan would be processed since I signed a contract. 

A month later, August 2, I get a statement from Mazda services for 9.9% interest and $30 more a month then agreed and payment had been due August 1. I went straight to Capitol Mazda and the finance person (Efrin) confirmed he saw I was approved with Wells Fargo at 6.7% and would correct the problem right away by pulling back the Mazda service loan and submitting Wells Fargo. Two weeks later, he still had not taken care of it but told me not to pay the loan to Mazda services which was deliquent and now requesting two months of payments. 

In September, I am still waiting for Efrin to right the wrong and he tells me he requested the loan pulled back twice and is working on it. I contact Chase who carries the loan for Mazda services and they confirm that Efrin never requested the loan be pulled back and I am responsible. I contacted Wells Fargo and they told me I was approved for the loan but Capitol Mazda declined it. 

I filed a complaint with the Federal Consumer Protection Bureau and Capitol Mazda's compensation was to pay the first two months of payments and did not replace the 9.9% loan with the better rated loan. They have effected my credit to where I am not able to apply for a new loan because of the 8 or more credit applicaitons they ran, and lost the option of the Capitol One loan I had secured. 

In researching what they have done, I discovered this tactic of switching out the loan for their own higher interest is called Predatory Lending Practices. I will now be paying $1000s more in interest on my car loan because of their deception. 

Don't fall victim to the same scam. Walk in to a dealership prepared to purchase a vehicle without going through the dealerships credit and loan process. Their intent is to make as much money off of you as possible and they are unrelenting in their pressure to get your money. Always take a second person to be objective when you are not.