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Rewritten Contracts/Backdating. Need HELP......
I need your help. last Sunday we went to a Mitsubishi dealer and trade-in my used car which I am upside down. They told me that I was approved for $399. When we went to the finance, we signed everything, after that, he told us that they will submit it to one of the credit union for auto loan.
I have a credit monitoring so I saw all the banks that they tried to apply for the loan, I called him yesterday and he told me that they are still trying to approve my loan. He told me to call today.
Today, I called him and he said that your loan has been approved but you and your wife need to go here to sign a new contract, I told him that we already signed the contract. He said we just need to do a little change on the maintenance package.
Guys, I need you help. I saw this when I was a looking around. What should I do?
Scam 3. Rewritten Contracts/Backdating
Often a customer will not qualify for financing upon the terms on the first contract. The customer may be required to increase a down payment, higher APR, etc. in order to qualify for a loan. The dealership has the customer come to sign a second contract with the different terms but backdates the second contract with the date of the first contract. This affects the finance disclosure laws in that the customer is being charged interest for a time period in which the contract is not yet in effect, etc. In addition to making a material misrepresentation regarding when the customer takes the obligation of the new contract, a backdated contract often also violates the single document rule (explained below) because another form (usually called Acknowledgment of Rewritten Contract) has the actual date when the contract was signed. Further, many customers are not told that they do not have to sign a second contract, instead they can choose to cancel the contract and return the new vehicle and have the down payment and trade in vehicle refunded. Finally, a dealership only has 10 days to tell you they want to make changes to the contract or cancel the contract. After the 10 days, the dealership cannot change the deal.