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Report: #1406708

Complaint Review: Gateway Financial Solutiins and Rightway auto sales - Michigan

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  • Reported By: Mark — Kalamazoo Michigan USA
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  • Gateway Financial Solutiins and Rightway auto sales Michigan USA

Gateway Financial Solutiins and Rightway auto sales Fraud and Loan Sharking Kalamazoo Michigan

*Consumer Comment: Voluntary Repossession

*Consumer Comment: The Painful Truth

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 I recently bought a 2007 Chevrolet Trailblazer from rightway auto sales. The day I test drove the car was hot. I tried to turn on the air conditioning, only to find that it was blowing hot air. When I returned, I informed the salesman that the air wasn't working. Without any hesitation he made the statement that, "It isn't a safety issue we won't fix it". I remained calm and told myself , no problem i'll just take it to a shop to have the A/C charged. That's when i found that the A/C condensor had been removed. I went back to rightway again the next day and informed them that the condensor was missing.

Again the salesman without hesitation stated that it wasn't a safety issue and refused to fix it. They failed to uphold state and federal laws and disclose to me that it had been removed. I tried to report them to the state, the state told me that they neede the documents that they were supposed have given me. To shorten the story, I ended up becoming my own investigator. What I have found against them in the process is shocking and sickening. I began to research their base sales price vs blue book value. Their base sales price is $9,245.00.

Blue book value of that car, in good condition is only $4,475.00. On top of that, they charged me the maximum state intrest rate of 25%. On topof THAT, Gateway is requiring me to make bi- monthly payments of $234.00, with NO grace period. Last week I returned the car to rightway. I expected them to put the car in collections. However, I did not expect what gateway is doing now. Not only did they send me a letter notifying me that the car was going to auction and that it is in collections, but they have already taken the liberty of threatening to garnish my wages or my family's income. I stumbled across a little know law called Loan Sharking.

I'm NOT stupid. I have read this law and I fully understand it. What gateway is doing fits this law to the letter. Almost word for word. There is even more happening than what I can put down in here. As I have stated, I have attempted to get the state involved, I have also tried to get the local and state police agencies involved and I've even consulted with attorneys only to be treated like I am the criminal. I have been lied to, they have passed the buck, and I have been stonewalled. All of the people that should care, plain and simple DON'T. What these two businesses are doing IS illegal.

This report was posted on Ripoff Report on 10/16/2017 09:33 PM and is a permanent record located here: https://www.ripoffreport.com/reports/gateway-financial-solutiins-and-rightway-auto-sales/michigan/gateway-financial-solutiins-and-rightway-auto-sales-fraud-and-loan-sharking-kalamazoo-mi-1406708. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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REBUTTALS & REPLIES:
0Author
2Consumer
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#2 Consumer Comment

Voluntary Repossession

AUTHOR: FloridaNative - (USA)

POSTED: Sunday, October 22, 2017

I am just a consumer that has no affliation with this dealership nor any other dealership. I have a few comments for you so you can understand what your part is during this purchase and return. 

  • Coast, the previous responder, is right - used vehicles are sold AS IS
  • Once the vehicle purchased by you all maintenance and repairs are your responsiblity at your expense unless you have a warranty to cover selected items
  • The time to negotiate repairs and purchase price is after you have had your 3rd party independent inspection by a good mechanic not affliated with the dealership. That inspection may very well be so poor that you decide to not purchase the vehicle but you don't know the vehicle's actual condition until you have this inspection.
  • When you bring a vehicle back to the dealer without either paying it off or trading it in so the vehicle loan can be paid off by the dealership to which you traded the vehicle, you are actually entering into an agreement for voluntary reposession.  Returning the vehicle does not extinguish the loan. You still owe for the $$. 
  • Long story short - you have a repo now. That is not a good thing. Check repossession laws in your state to see what the lender has to do and what you can do to mitigate this extremely bad credit issue.

There are lots of negative consequences to a voluntary repo. The dealer/finance company has to send you that letter detailing what is going to happen next. Just because you gave the vehicle back doesn't mean you don't still owe all the money for the loan. The finance co/dealership will sell the car at auction for pennies on the dollar and then they will add a bunch of fees to your remaining balance per the purchase & financing contract you signed.

If you don't pay the remaining balance due, the finance company can take you to court and if the judge agrees (and they usually do) you will get a judgment against you for the balance. That judgment continues to accrue interest. The finance company can then have your wages garnished and your bank account siezed  - only after following proper procedure (not before). BTW, judgments last for 20 years in most states and 10 years in others. The judgment can be renewed for another 10 or 20 years if unpaid so this is a lifetime problem, not a short issue at all. 

That note you signed for the loan is a completely separate from the worth of the collateral.  In fact, since you turned in the vehicle early in the process you probably owe almost all of the original amount. Refer to your letter for details. 

Any dealer can sell the very same vehicle multiple times if the vehicle is returned to the dealership with the loan unpaid. They can't collect twice on the same loan. However, each time it is repo'ed the dealer can go after each consumer that signed the paperwork to collect for the unpaid balance of the loan that the consumer agreed to pay. This is not only legal, but SOP. 

Research financing. The loan stands on its own whether you have the vehicle or not. When you default there are numerous remedies available to the lender - and each of those remedies cost you money. The steps that the lender has to take to collect on the defaulted loan are relatively simple. 

Learn all about financing before you sign your name to any future loan paperwork. Figure out what you are going to do with this defaulted loan. If you decide to negotiate with them, make sure you get an attorney involved and a receipt showing you are paid in full - if you do pay them.

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#1 Consumer Comment

The Painful Truth

AUTHOR: coast - (USA)

POSTED: Tuesday, October 17, 2017

You agreed to purchase the car after it failed the test-drive. Perhaps you are confused by the terms of an AS-IS sale. Your dissatisfaction with the cost and interest rate is a clear case of buyer’s remorse.

It is not unlawful to sell merchandise at a price above market value. They are not required to observe KBB prices. They are not required to offer a grace period.

Specifically, what state and federal laws has the seller violated?

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