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Chrysler Capital LLC is being sued in an auto loan class action lawsuit, which alleges the financial department of the Chrysler Group LLC uses local dealerships to get around usury laws while exploiting New York’s low income consumers by financing high interest rate car loans.
Plaintiff Franklyn C. Garcia is pursuing this Chrysler Capital class action lawsuit in order to represent himself and a Class of potentially thousands of New York consumers. Garcia claims that he and other consumers in this Class were targeted by Chrysler’s “predatory conduct,” which allegedly includes using local New York dealerships and ambiguous phrasing to skirt state usury laws. The Chrysler Capital auto loan class action lawsuit also alleges that Chrysler, through the dealerships, issued auto loans featuring annual interest rates that are higher than 16 percent—New York state’s maximum allowable auto loan interest rate.
According to the auto loan class action lawsuit, “Chrysler Capital targets vulnerable, low-income consumers like Mr. Garcia who desperately need a car to go to work and take care of their family and who have essentially no bargaining power. Knowing the fundamental importance of automobiles in these consumers’ lives, Chrysler Capital takes advantage of them by imposing interest rates that are unreasonable, unfair and illegal under New York law.”
Garcia allegedly earns a yearly income of $34,000 a year. In March 2014, he visited Eastchester Chrysler Jeep Dodge, who has been named as codefendant in in this auto loan class action lawsuit, and bought a used 2011 Dodge Durango for $26,000. However, the New York dealership allegedly sold the car to Garcia with an auto loan interest rate of 23.67 percent, an abusive rate. According to the Chrysler Capital class action lawsuit, the plaintiff will have paid $54,000 for his vehicle by the end of the 72-month auto loan period.
According to Garcia’s class action lawsuit, Chrysler Capital employs retail installment contracts that allow the financial arm of Chrysler Group to conceal auto loan transactions that are above the 16 percent state maximum. He further alleges that Chrysler Capital does not give the money directly to consumers, and instead gives this auto loan money directly to the local dealerships like Eastchester Chrysler Jeep Dodge. Consumers like Garcia then make payments for the vehicle with these abusive interest rates in place.
After this is complete, Santander Consumer USA, Chrysler Capital’s controlling member, allegedly secures the subprime auto loans like Garcia’s for sale to investors.
The Chrysler Capital auto loan class action lawsuit alleges: “Chrysler Capital uses the form of the retail installment contract as an artifice to disguise its usurious intent. Upon information and belief, Chrysler Capital has intentionally charged illegal interest rates to thousands of New York consumers, directly causing them financial harm.” The plaintiff claims he and the Class are entitled to full restitution of all interest they have paid on their auto loans beyond the New York legal limit of 16 percent a year.
The plaintiff is represented by Christopher B. Dalbey and Robin L. Greenwald of Weitz & Luxenberg PC and Karla Gilbride of Public Justice PC.
The Chrysler Capital Auto Loan Class Action Lawsuit is Garcia v. Chrysler Capital LLC, et al., Case No.1:15-cv-05949, in the U.S. District Court for the Southern District of New York.
UPDATE: The Chrysler Capital Sued in Auto Loan Class Action Lawsuit was dismissed on September 30, 2017.
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103 thoughts onChrysler Capital Sued in Auto Loan Class Action Lawsuit
The same thing has happened to us. 4,000 in interest and totally upside down in jeep DO we have recourse?
I have 2014 dodge avenger ,bought it brand new. I been making payments of $572.00 for 3 years and 4 months. I still owe $15,000 to Chrysler capital. $6000 is in interest. Financing has been denied. I have 55,000 miles on car and it’s in perfect condition besides the recall on the air bags. That they never have the parts too.
I losing alot of money for no reason.
Atl,ga
I financed a car out of state(Crystler Financial”. They mailed me the paperwork(over night) and said sign it and overnight it back. They even provide the overnight FedEx prepaid envelope. I asked about my copies and they keep saying we will mail you copies of the paperwork. It has been a year and every month I call the dealership and they say the same thing. I still do not know what I signed. I am disabled and they are aware of this. My payment is $1200 a month. I still have no paperwork but have made payments every month for a year.
I am having the same problem as some of these people. I took my vehicle that I owned to the dealer that specialize in my car. I had a dodge grand sport caravan, after my dealer couldn’t figure out what the problem was. He told me to take it to Witten Brother. They checked my car and told me they don’t make the part for my vehicle anymore which was the main timing scener. I was so upset crying because I needed to get back and forth to work. They called me and said they will help me get a car and sent someone to pick me up the next day. There’s so much more to tell to write it all. I need help can’t afford ro continue to pay $528. 19 every more. HELP!!!!
They did this to me in GA
How can I join the lawsuit?
If your credit is such that you can only get 17%+ interest on a vehicle, you should probably buying a cheaper vehicle. Build credit prior to big purchases. Credit rates will improve and you can be a nicer car down the road.
Payments go to interest first. The first payments on any loan go almost all towards interest. Use an amortization schedule to see how it works. Google it and you will find a free one.
Seen way too many people get in over their heads because they fell in love with a car, don’t understand how credit works, and let the dealer talk them into something because they only discussed monthly payments. Lower the payment, less principal balance comes down each month, more interest paid each month. End result $1,000s of dollars in more payments.
I have a 2011 jeep patriot fianced through them can i get anything when i got my jeep they said my intrest rate was a 12 percent an then i talked to them an they said it was a 21 percent is it possible for me to get anything i live in oklahoma
i have close to 17% interest rate for a 2015 chrysler 200 i traded my dodge avenger in i think my total loan was 25,600$ i bought the car in oct of 2015 and now its barely down to 23,000$ there has got to be something wrong with this and my car only has 24,000 miles and it books between 8,000 and 10,000$ like what the hell i feel cheated the dealership realy pressed hard on selling me this car when i had went there to purchase something else. i live in virginia any way i can get help with this
I have a 2013 Dodge avenger made 33 payment’s which add up to $20,229 and it look like I have to make another 20,000 which would be double of car. I just want out of loan they are rip offs.
This is currently happening to me, we have a 2013 Dodge Avenger we got in 2014. We have made over 24,000 in payments and the original loan was for 13,800. We still have a balance of 18,900! How do we get into contact with this attorney?
How can your principal balance have gone UP by $5,100 after paying for 3 years? Do you have the figures reversed? What is the APR on your auto loan?