Is it illegal for a car salesman (his own used car dealership) to ask for $500 for his pocket in order to buy used car?He said there was not...

Question

Is it illegal for a car salesman (his own used car dealership) to ask for $500 for his pocket in order to buy used car?

He said there was not enough money to be made on deal. I have a 3 year deal with bank. The car has mamy problems he did not disclose.

Can I get out of contract?

Jim

Answer

Possibly. A failure to accurately disclose down payment, finance charges, and cost of credit in a Retail Installment Sales Contract governing vehicle financing could give rise to damages under the federal Truth in Lending Act (TILA) and state law under the Retail Installment Sales Finance Act (RISFA). A possible remedy under RISFA is rescission of the contract. I would be happy to sit down with you in a free consultation in my office to further discuss. Consumer cases are done on a fee shifting contingency basis, and you would not be required to pay attorney fees in advance.