Dealership repossessed my car after they filed for a loan using my info – I sued, and now I’m owed $350k

A WOMAN’s car was repossessed after a dealership filed a loan application using her information – they didn’t have permission.

She only applied to two lenders – the dealership applied to a third without asking.

Google

Getty

Four years ago, Tina McPherson bought a 2017 Dodge Durango from Suburban Chevrolet Cadillac of Ann Arbor, Michigan .

Before driving it home, she’d applied to two lenders for a loan to finance the rest of the vehicle after making a $2,000 down payment.

She was approved by both lenders and drove the Durango home.

A week after she drove her car home, she received an adverse action warning from a third lender.

McPherson never applied to a third lender and discovered the dealership had used her information to apply to the lender with different terms without her permission.

She refused to sign the new financing documents and return the title.

As a result, the dealership hired a towing company to repossess her car three months later, along with a message from the finance manager that they’d keep $900 of her down payment to cover towing expenses.

McPherson hastily sued the dealership for a spot delivery wrongful repossession.

During the trial, a jury found the dealership to violate the Fair Credit Reporting Act, state laws, and the Equal Credit Opportunity Act, reported Automotive News .

It was also found to be guilty of wrongful repossession and conversion.

US District Judge David Lawson wrote the evidence presented during the trial represented the “reprehensibility of the store’s unlawful conduct,” and made McPherson “financially vulnerable.”

His decision also read that the dealership’s actions were “not an exception or mere happenstance but instead represented ‘business as usual'” for the Ann Arbor dealership.

McPherson presented evidence that her credit score had been accessed almost 70 times and was “harried” to accept the new financing terms over 15 weeks.

The “most damning” evidence against the dealership was the repeated attempts by staff to get McPherson to surrender her Durango and accept the new terms.

Dealership Tips

Here are some expert tips when purchasing a car from a dealership lot:

• 1. Set your price: Ensure you’ve calculated your monthly budget before going to the lot. You should include the car’s loan payment, insurance costs, fuel, and regular maintenance.
• 2. Research: Make sure you know which cars you’re interested in test driving before you reach the dealership.
• 3. Pre-approval: Secure financing before you go to the dealership. Dealerships may give you a better interest rate if they are competing with an outside bank.
• 4. Test away: Get behind the wheel before making any payments. A car purchase will be worth thousands of dollars – drivers should ensure they like the drivetrain, steering feel, and comfort of the car before taking it off the lot
• 5. Haggle: Drivers should always try to negotiate the price. There are so many good cars on the American market – buyers have a strong hand when negotiating price.

Source: Kelley Blue Book

Lawson said the dealership was unlawfully trying to “unwind the completed sale at its whim.”

US District Judge David Lawson ordered the dealership to pay McPherson $350,000 in punitive damages.

The outlet reported that the dealership asked Lawson to reduce the fine in July, calling it “excessive.”

Lawson quickly declined the request, ordering the dealership to pay the full amount.

USER REACTION

Readers of Jalopnik’s coverage of the event were excited to see justice served, though some worried it may not be enough to stop them from doing it again.

“My question is, is the fine more expensive than the profits? Because there is no way this was the first time they did this, and unless it hurts worse than that, then it won’t be the last,” they wrote.

One reader, claiming to be a former car salesman, said the tactic may be a result of impatience.

“When I sold cars we either made people wait or leave and come back because no paperwork was being signed before the approval came through, but I know there are some higher volume dealerships that don’t want to do that and just get people in and out, especially if they’re open on Sundays when the banks aren’t,” they said.

“What’s legally wrong about this is that the initial paperwork signed at the dealer states that even if there’s an approval ahead of time the dealer holds the paper (loan) until it’s reassigned to the finance company.”

One reader thinks the fine should have been steeper.

“Judges need to make examples of scummy dealerships. $350,000 could be $500,000,” they wrote.

“I hope this family puts the money to good use.”