NJ Mom Sues Dealership for $50K in Unpaid Auto Loans After Refinancing

A single mom in New Jersey is left with a $50,000 debt on two auto loans after refinancing through Autosmart dealership in Palmyra. Prosecutors are investigating the dealership, which received several complaints from customers alleging they were scammed. NBC 10 reported that investigators took license plates from the garage and boxes and computers from the office. The dealership allegedly failed to send a payoff check to the first company Noble financed with, leaving her with two car loans.

Prosecutors in Burlington County, New Jersey, are investigating Autosmart, a car dealership in Palmyra, following allegations of fraud and mismanagement of funds. The investigation, which involved a search warrant and the seizure of records, is ongoing, and prosecutors have declined to specify the charges being considered.

The investigation was prompted by a complaint from Susan Noble, a single mother who bought a used car from Autosmart last September. Noble alleged that Autosmart promised to help her refinance her loan to reduce her monthly payments. However, when she returned to refinance, she discovered that Autosmart had not sent the payoff check to the original lender, American Credit Acceptance (ACA). As a result, Noble now has two car loans totaling over $50,000, which has severely impacted her ability to buy a home.

Autosmart, through its consultant SmartSource, blamed the financial institutions involved for the failure to process the payoff. However, Noble maintains that the dealership's actions were negligent and potentially fraudulent. Scam refinancers often promise lower payments but request advance payments or take over monthly payments without paying the lender, leading to significant financial harm for customers.

Auto loan refinancing scams can have severe consequences, including repossession of the vehicle and damage to credit scores. Dealers may employ various tactics to attract credit-challenged buyers, such as offering low initial prices and rates, only to reveal hidden fees or extend loan terms. It is crucial for consumers to read the fine print, avoid being rushed through paperwork, and consider alternative financing options.

Investigators have not yet provided specific details about the charges being considered against Autosmart. However, the dealership's actions have raised serious concerns about its business practices and the potential for fraud. As the investigation continues, it is essential for consumers to remain vigilant and take steps to protect their financial interests.

References:
[1] https://finance.yahoo.com/news/nj-single-mom-left-hook-144600402.html