Did Your Car Dealership Use a Preferred Lender?
If you bought a car at a dealership and financed your purchase through the dealer’s recommended Federal Credit Union, you may have a legal claim. Some credit unions have special agreements with car dealerships that allow the dealerships to charge marked-up interest rates—without telling the consumer the credit union’s real rate. These secret agreements allow dealerships to offer a higher interest rate than the consumer could have gotten by going directly to the credit union for an auto loan. These special deals may be unlawful. Sound familiar? Join the Car Dealership Preferred Lender Class Action Investigation, today!
What Is a Preferred Lender?
For example, a customer may be offered financing on a car through the dealership’s “preferred lender.” The dealership might say that the preferred credit union offers great rates, and the customer can join the credit union on the spot if they’re not already a member. But the dealership may not disclose that the rate offered to the customer is not the credit union’s real rate—the rate the customer could get if he or she walked into a credit union branch, signed up, and got pre-approved. Instead, the interest rate offered by the dealership is a marked-up rate that allows the dealership to take a cut. The markup is never disclosed. Attorneys are investigating whether car dealerships are illegally marking up credit unions’ actual interest rates without telling their customers and, if so, whether class action lawsuits can be filed. They need to gather more information from the auto loan customers before they can take any action.
Editor’s Note on Car Dealership Preferred Lender Class Action Investigation:
This piece is written about recent troubles issues with car dealerships using preferred lenders, leading to marked up interest rates. If you have gone through issues similar to what is covered above, we do ask that you contact us today! If you are considered eligible to be among the class of consumers described in the article above, you may eventually be able to participate in receiving any compensation the court may award.
If you believe that what is alleged in this piece has affected you, please don’t hesitate to reach out to us. We’d be happy to help you take a step in the right direction, fight this issue, and better enable you to join the consumer class action. If interested, please send an email to Outreach@ConsiderTheConsumer.com, find us on Twitter or Facebook, or even connect with us directly on our website! We look forward to hearing from you all.
Similarly, please check out our current list of Class Action Lawsuits and Class Action Lawsuit Investigations, here.
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