July 2, 2013, purchased a vehicle from Freedom Honda. The finance manager, **************, stated that my bank would not approve financing unless I obtained an extended warranty from them. I had explained that I couldn't afford the extra payment but ***** insisted I wouldn't be able to purchase the vehicle without it. I never received any paperwork from Freedom or the warranty company stating that I had a warranty in place, and Air Academy Credit Union financed the vehicle.
I have just learned that it is illegal for a car dealership to sell a warranty under the pretense of obtaining financing.
Freedom Honda has been paid for the vehicle through my deposit of $1,000 and $5821.25 from Air Academy Credit Union. Total agreed upon purchase price on the vehicle is $6748.96 They are now trying to collect an additional $1800 for the warranty that I did not want. I had written a check per *****'s instruction to cover the warranty he claimed the bank needed. This was a post dated check and was deposited by Freedom prior to the agreed upon hold date of July 27th. The check was returned insufficient. I wrote a replacement check and did not get notice of return, nor have I had any contact from Freedom since. I assumed they did not write the vehicle warranty.
I received notice from 4th Judicial District Bad Check program stating that I owed Freedom Honda $2,085 or that I would face prosecution if not paid and I did not attend a finance class.
I learned today from the warranty company that Freedom Honda retained the $1877.30 warranty fee and no monies had been forwarded to American Guardian Warranty Services.
In addition to the warranty issue, there were two service items that were noted and never taken care of by Freedom Honda as promised. The door mirror switch was broken, as well as the center console latch. The salesman explained their service department would contact me and never has.
Freedom Honda has been overpaid for the vehicle in the amount of $72.29.
Freedom Honda needs to cancel the warranty they forced me to obtain.
Freedom Honda needs to cancel the criminal case with the 4th Judicial District DA.
Freedom Honda needs to reimburse me in the amount of $72.29.
Freedom Honda needs to honor their promise to repair the two items that were noted upon sale, that they agreed to repair, at no cost to me.
Based on the information in our file. Ms. ******** check appears to have been cashed one day early. I am not sure if we were notified by her of bounced check fees charged by her bank. If we were notified we would have gladly paid them and re-deposited the original check. What we do know is that the check was returned and re-deposited on August 6th 2013. 10 Days after the funds were supposed to be available. It concerns me that Ms, ******** states that the finance manager asked her to write a check for the service contract. Based on the fact that she specifically wrote on the face of the check that it was for "2000 Monte Carlo Down". That leads me to believe that she knew it was down payment. At no time did we receive a replacement check from Ms. ********. We would have attempted to notify Ms. ******** several times that her check had bounced before we turned to the court system. Ms. ******** also states that Mr. ******** stated that she is required to purchase a service contract to obtain financing. Based on our training and required compliance documentation our finance managers clearly understand that is not a requirement. Freedom Honda sent payment to American Guardian for the service contract on August 8th 2013. At this point I am willing to cancel the service contract. The prorated amount is $1449.27. Leaving a difference of $350.73 owed to Freedom Honda. When the refund is received from American Guardian we will cut a check to Ms. ******** that she will need to sign back over to Freedom Honda. At that point we will stop pursing collection of the $1800.00 and cancel the criminal case against her. We will also forgo the $350.73 in lieu of any repairs she feels she was promised. We have a due bill with her signature stating that nothing further was due to her. At that point she will not owe Freedom Honda any money. I feel this is a very reasonable solution.
Final Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
First, I hand delivered a replacement check to *****. This replacement check was not posted to my bank account. I assumed that my wishes were honored and I did not have a service contract.
I have two invoices from Freedom Honda. One invoice includes the service contract ***** stated was mandatory if financed through Air Academy Credit Union, the second invoice shows no service contract in the event he could get financing without the need of a service contract. I retained both invoices and have my pink copies in my possession, both dated the same day. I will be happy to forward copies of the invoices to Freedom Honda so that they can see that their employee may not have abided by their code of ethics, and violated Freedom Honda policies and procedures.
Freedom Honda states that they "would have attempted to notify Ms. ******** several times that her check had bounced" however, I received no notice, verbal or written. Notice from the 4th Judicial District Attorney's office was my first indication.
***** was told that I did not want a service contract, and that I could not afford a service contract. The vehicle in question is a 2000 with over 120,000 miles on it at time of sale. Current NADA value is $4200. I was forced into obtaining the service contract through Freedom by *****, despite Freedom Honda policies and procedures.
I had emailed my concerns to the general manager at the time, ***, without any response, although receipt of my email was confirmed by *****.
I feel my transaction was handled with less than proper business conduct. This could be an isolated incident. However, I do have proof of the misconduct, and have actually 3 sales invoices in my possession for this transaction. The original showing only $1,000 down payment, and two others, one showing $2,800 down payment which covers the service contract, and another for the same date without the service contract.
Having said this, I am willing to accept Freedom Honda closing the matter by refunding the price of the service contract, in the amount of $1877.30 or however they want to clear this matter. But, I have already paid the district attorney's office $342.50 that I paid immediately until I had a chance to dispute the matter with the DA's office. This payment is also going to Freedom Honda, leaving an overpayment of $342.50.
I appreciate Freedom willing to look into this matter and hopefully this assists all parties involved in improving their systems.
Final Business Response
1.27.14 We are settling this with them client today.