Rewritten contract backdating

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Dealerships typically use this improper practice to dupe consumers into paying for products they otherwise would not purchase such as alarms, service contracts, GAP insurance, paint/fabric protection, etc.The Automobile Sales Finance Act (“AFSA”) requires all of a transaction’s obligations to be set forth within one single document.

The dealership usually will proceed to stuff the transaction with all sorts of extra products and accessories which fall within the inflated monthly payment.Unfortunately many dealerships ignore this requirement and instruct consumers to write checks for the deferred portion of their down payments which they agree to refrain from cashing until some date in the future.Often times the dealership will even instruct its consumer to sign a separate agreement laying out the date it will cash each check along with additional provisions concerning checks which come back.Many dealerships simply ignore this requirement and instruct customers to sign additional documents, such as trade-in forms stating the customer agrees to pay any difference between the value of a trade-in and the prior credit or lease balance.Another example involves dealerships who accept trade-in vehicles but who then inaccurately disclose the trade in transaction as a “cash down payment.” Yet another common example is a “hold check agreement” stating the customer agrees to pay additional money towards a down payment at some later time.

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