Dealer Fraud: Car and RV Financing

Another type of auto and RV dealer fraud is finance fraud. Car dealer financial fraud also informes you that you do not qualify for an ordinary loan, but a “special” loan arrangement can be made that includes a significantly higher APR (interest rate) or much more detrimental terms.

Another type of auto dealership financial fraud comprises accessing your credit history or pulling a credit report on you without your permission. This is a Fair Credit Reporting Act (FCRA) violation and an invasion of your privacy.

Financing fraud may be performed by a dealership through other means such as misrepresentation of financing terms in violation of the truth in lending act or other statutes, promising financing and later changing the terms of said financing after the deal is signed, or through the decline of sale or requests of return of the vehicle after financing terms have been agreed upon and financing approval has been granted in writing.