Auto purchase - fraudulent practices???

[wphdesign]

I purchased a new car on October 22. I had credit problems, and they set me up with a "credit-builder" loan. I was told the F & I person that this was specifically to help people like me and got a co-signer. I got the car, signed the paperwork, including a spot delivery agreement. I was told that the payment would be $288 / mo. When I questioned the finance person about the $364 amount on the agreement, I was told the payment cycle was 40 days, which did work out to approx. $288 / per month. I also questioned some of the extras that were added on, and was told they were necessary when financing the car (GAP coverage, mandatory maintenance agreement). I was given a copy of the Spot Delivery Agreement and a Delivery Receipt and told that the other paperwork would be ready later.

I just received my first statement from the finance company for $364, and in speaking with them, found out that this is indeed the monthly payment. When I questioned the finance person, he told me that there is a 10-day grace period for payment, which makes it 40 days.

At this point, I don't have anything but the car, the copies of the 2 pieces of paperwork that I mentioned before, and a payment that I can't really afford. I called the finance company to discuss the potential fraud, and was told only the dealer could cancel the loan.

Does this constitute fraud? Do I have any legal recourse to back out of this purchase?

[Eagle]

Did the signed paperwork indicate that the monthly payment would be $364? Or was the agreement unclear on this? If the agreement that you signed was unclear on its face then you have a good consumer fraud case. However, if you signed the agreement and the agreement indicated clearly that the payment was $364 and the first payment was less due the 40 day cycle, then you will have a tough time proving your case.

Now, regarding the extras, if any of them were not mandatory and were optional items the you may also have a consumer fraud cause of action. It is fraudulent to force you to buy these if any of them were optional.

In these situations you have to read all the paperwork very carefully, including the fine print. And you may have to read them a few times to really understand everything clearly.