Trend Financial auto Trend auto leasing group lease GP inc Company charged me to get the maximum amount as a middle man by collect my downpayment and calling it a safety deposit and not including it for the charges paid. Toronto Ontario

I honestly do not know what the complaint is exactly but I will respond to what I think your complaint is...I will go ahead and assume that your complaint is that you believe that your security deposit was supposed to be a down payment.

Trend Financial is a lender that works with clients and businesses that have a difficult time working with a bank. Typically it is due to the client or the vehicle being considered high risk.

Our structure works like this....

For example, if a client is looking for a $10,000 vehicle then our credit department will determine how risky is the client and based on that determine how much security deposit we require in order to provide a loan for the full $10,000.

Let's assume that the credit department determined that in order for you to be approved on a $10,000 loan, we require a $2,000 security deposit to off-set the risk. Assuming the client accepts the loan structure, we then make an appointment for the client to sign the documents. We ensure that all of our documents are very clear and transparent, and we also ensure that Trend provides the full explanation to the client during the closing as all closings must be conducted with a Trend employee present to ensure that all disclosures are properly made. Assuming the client still wishes to continue, we then proceed and fund the loan to the dealer. 

Once the loan is funded and you took delivery of the vehicle, you start making payments on the $10,000 loan. Once the $10,000 loan is paid down to an amount equal to the security deposit, then we use the security deposit to pay off the balance. In this example, once the $10,000 loan is paid down to a $2,000 balance, we would then apply the security deposit to cover off the last bit of principal. So regardless if the security deposit was considered a down payment or not, you would still be paying the same amount of principal (which is $8,000) by way of the monthly payments. Obviously this structure is more expensive than a down payment, but it is used as it is suitable for the risk of these loans.

I am more than happy to personally review this with you, but I am confident that it was properly disclosed to you during the closing. If you would like to continue a discussion, please email me at eric@trendfinancial.com

Regards,

Eric Kaplan - COO of Trend Financial