Car Dealer Illegal Finance Charges and Credit Acceptance

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Car Dealer Illegal Finance Charges and Credit Acceptance

Car dealers often try to pass on finance charges to customers, especially those with bad credit. However, the law regulates what finance charges consumers can be made to pay. Dealers often try to scam customers by passing on the “discount” or “bank fee” charged by Credit Acceptance and other lenders that target consumers with low credit scores, inflating the price and cost by thousands. Buyers with bad credit often are taken advantage of by this scam because dealers know they have limited options. Be aware of this scam and know how to spot and avoid being charged illegal finance charges.

One way to determine whether or not a fee or charge is a finance charge, is by thinking about it this way: if you were paying for the car in cash, would you have to pay this fee or charge?

#Car​ #cars #lawyer​


By: Daniel W. Whitney, Jr., Esq.
Whitney, LLP
409 Washington Ave, Ste 750
Towson, MD 21204
410 583 8000 – Phone
We primarily represent consumers in Maryland.
Call Us For a Free Consultation

To Find a Lawyer to Help with Car Dealer Problems In a State other than Maryland:
National Association of Consumer Advocates:

Why I became a lawyer that sues car dealerships and why I post videos about my car dealer fraud cases and dealer scams:
Before becoming a lawyer I sold cars while I was in college. It was while selling cars in Maryland that I learned of the ruthless nature of car dealerships, and learned there is only one rule that matters at most dealerships: GET AS MUCH MONEY AS POSSIBLE FROM THE CUSTOMER, TODAY, AND NOTHING ELSE MATTERS. I saw things that I knew were illegal and decided I wanted nothing to do with that.

Today, I’ve sued those same dealers I worked for and others to help cheated consumers fight back. Consumers must know they have more legal rights than they realize, and can take action against dishonest dealers. #dealership #newcars #usedcars

Common car dealer problems and scams I help car buyers with include:
1. Car dealer forged the buyer’s signature on a second finance contract.
2. Dealers selling a car without having the title. *happens all the time*
3. Changing the monthly payment and amount financed after the deal is done.
4. False online price advertising when the online price increases at the dealership.
5. Bogus reconditioning and inspection fees for illegal profits.
6. Selling vehicles that did not pass state inspections.
7. Forcing customers to buy extended warranties and vehicle service contracts.
8. Spot Delivery Violations – when financing is not approved:
9. Dealer keeps the down payment although financing is not approved;
10. Dealer sells the trade although financing is not approved;
11. Dealer forces customer to sign a contract with worse terms; and
12. Dealer forces customer to keep the contract and not allow them to cancel.
13. Charging illegal finance charges and passing along exorbitant bank fees.
14. Car dealer does not disclose rental history or other prior commercial use.
15. Credit Application fraud – creating fake jobs or inflating salary.
16. Car dealer runs credit without permission.
17. Car dealer refuses to cancel the extended warranty or steals the refund money.
18. Car dealer uses out of state sister dealership and charges illegal fees and interest.
19. Taking advantage of bad credit and low credit buyers.

Common resolutions to car dealer cases once dealers are sued include:
1. Financial restitution including actual damages (meaning actual money the buyer spent).
2. Unwinding the deal, meaning the buyer returns the car and gets all of their money back.
3. Dealer buys the car back for the remaining payoff and returns the down payment and fees.
4. Cancelling a warranty or service contract and getting the refund.
5. Getting the trade-in back.
6. Having the down payment returned.
7. Dealers pay the buyer’s attorney’s fees.

We do our best to educate consumers as to the common problems and scams with car dealerships and to fight back when buyers are taken advantage of. Some other great channels for information about car dealerships and auto fraud dealer schemes are Kevin Hunter The Homework Guy, The Chevy Dude and WhiteBoard Finance.

Here is our blog on our dealer cases and dealer legal issues:
Here are descriptions of some of our past car dealer settlements:

This YouTube Channel and this video are not legal advice and do not provide legal advice. An attorney-client relationship with Whitney, LLP and Daniel Whitney, Jr. is created only once a representation agreement is signed by Whitney, LLP and the client. Prior results are not a guarantee of future results, and all cases are different. Thank you for watching.

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12 Responses

  1. paz says:

    Why don’t car dealerships accept the IRS 1099A form they get the monies they want to charge for the vehicle and we receive the car we want

  2. Shan Jefferson says:

    That’s wat happened to me !!! I need help

  3. Rondell Williams says:

    Can you recommend a lawyer in our area? East Chicago, Indiana- we financed an SUV and finished payments over 8 months ago and they have not released our title even after several inquiries and requests. What should we do? I have all of the email transactions showing my requests as well as their responses.

  4. Liv says:

    I need help! so the guy at the car dealership lied about my income when applying for a loan. he put that I made $4k a month, when I literally was only making $1400 a month. He got me approved for a jeep paying $480 a month. And I know this is my fault and it was stupid of me to get a car that I cannot afford but idk what to do because I really cannot afford my jeep anymore. Is this fraud???

  5. RED BANDIT says:

    I have an issue with them right now and looking for an answer on what my options are. So, I bought a car through credit acceptance and the car immediately blew up, I told them to come get it multiple times. They never did. Now, all of a sudden, when I'm trying to get them off my credit report and make a payment anyways they it's too late and they're sending out repo, and I will be made to pay in full and the car no longer exists because I had told them to come get it for years. I've moved from that residence I live at.

  6. Jeremiah West says:

    Hi I purchase a 2013 Chevy Camaro that has known 123,000 miles on it and my notes are $360 a month $265 of that goes towards interest and only $95 of it goes towards the principal being 24.9% of Interest leaving me six years to pay 26,000 unfair what do I do?

  7. Autumn Athree says:

    you should learn more about finance charges, when they ask for a down-payment, that is fraud.
    learn yall laws
    15 U.S. 1605- Determination of finance charge
    The finance charge does not include charges of a type payable in a comparable cash transaction

    why the hell are yall puting money down.   yall are getting scam

  8. 1112america says:

    Can you please help me ?? I’m having so many issues with them.
    I pay then on time and they are really ruining my credit.

  9. Brooklyn Born says:

    Re upload

  10. J from the Chi says:

    Consumer credit transaction… I’m the creditor and the consumer..


    i have the same problem with the dealer where i finance my car they Charge me four different amount like dealers admin fee and finance admin fee OMVIC fee because im here in canada.thats the problem i have im here in canada and no lawyer wants to fight for u think u can help me please…

  12. homer Sheelagh says:


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