Wachovia Dealer Services Complaint - Predatory Lending?
MOUNT PLEASANT, SOUTH CAROLINA -- We bought a truck through a local dealership and were financed through Wachovia Dealership services. We made our payments faithfully until I was injured at work and had to go out on disability. We then got behind. After 2 months behind we worried about losing the vehicle and decided to look at buying a much cheaper car and trading the truck in. We were very honest with the dealer and he said he would work with us. He asked that we call Wachovia and get the payoff. When I called, the person with the payoff information became belligerent demanding to know why I needed the information. I told her the situation and she finally gave me the payoff number (which I realized later was inflated) When I tried to end the call the woman asked to speak to the dealer. When she got on the phone with him the first thing she said was that the truck was only worth half of what I owed and told him that it was about to be repo'd and unless he could wire them money by tomorrow it would be. The dealer stated that their money was good and that if a deal was struck that they would receive their money. When he got off of the phone with her he looked at us and said that she was ridiculous and very rude. He then told us he would be back with us in a couple of hours (never to be heard from again).
The calls from Wachovia started again the following day. I told the woman that we were trying to make good on our loan and that she had given false information to the dealer concerning the value of the truck. I told her that the truck was 8 months old with 5000 miles on it. I asked how it could have possibly lost 16000 in value(it was a Toyota Tundra) She said that it was actually worth about 23000. I asked to speak to her supervisor and told him what she had done. I also asked him how they financed the truck for 32,000 if it was never worth that. He said that your application stated that you made 100.000 a year. I about fell through the floor. I told him that I made under 50,000 and that my boyfriend who had financed the car only made 10,000 last year because we were building our own house. I also asked him why we would finance a loan with a finance charge of 19% if we made that kind of money. He said that they had called the next day to verify the income.
He said that my boyfriend had answered and verified 100,000 a year and said that I wasn't available because I was sleeping. I told him that this wasn't true and asked him what phone number he called. He read off my number. I told him that everyone is on their own cell phone in this house and that we only answer our own phones so he couldn't have verified income or talked to my boyfriend on my phone. I asked for a tape of the conversation and no, he couldn't produce one. I told him that this lending process was truly predatory as the truck price was inflated and our income of 100,000 wasn't verified with any documentation. He stated that they went by a previous car loan that had perfect credit. This wasn't true either as we had gotten behind on that one several times too. I finally had enough and asked him where I could turn the truck over. He dodged this and asked when we could make a payment. I said that it wouldn't be until the next month.
He said that they'd work with us because they didn't want the truck. I told him that we didn't want the truck if we were paying 10,000 more than it was worth. He said he would see what he could do. 2 days later they came and took the truck and charged us to transport it. I now have received a notice that it was sold and we owe 16,000!!! When will all of us that have been abused by this institution be heard? Who will advocate for us?
After posting this I received the comment that the bank did nothing wrong by financing a truck for 32,000 that was only worth 23,000. Let me clarify that Wachovia Dealership Services will only work directly with dealerships so...if the bank doesn't check the value before financing a vehicle there is a problem and one might think that there is some sort of relationship between the dealership and the bank where they both win.i.e... The bank finances a grandiose amount of money which with the interest rate serves to make them an obscene amount of money and the dealership also makes an obscene amount of money. In all of the transactions I have made in my life...almost a half of century...a bank won't finance above what they can get back...that is why the loan is secured. This is why mortgages are in default...inflated home values that can't be sold for the price financed, sky high interest rates and risky loans without the money to back them up. When a bank agrees to finance, the consumer(us) feels as though the price is fair. The other part of the comment states that my "bf" must have lied on the application about his income...first of all an unverified income of 100,000 just doesn't sit right...can anyone go to a dealership, lie on an application and be funded? I think not...unless there is a master plan to dupe the consumer so that both the dealership and the bank stand to make an "obscene" amount of money. I also brought tax records to substantiate the 10,000 a year my "bf" made. The assumption that we lied is the "ass"umption that lying is ok...nope! we both sleep very well at night!