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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
I still owe 22,000 with payment at 554.00 on my 2011 Dodge Challenger how can I get out of this loan, I just can’t do it anymore, I’ve already been paying for it for 5 years! Somebody, anybody please help me!
Same thing has happened to me with Chrysler Capital. My 2008 Torrent engine went out and i needed to get back and forth to work, well i went to get a used car but i was told they would only give me a new car. I got a 2015 Dodge Dart payments ended up being $521 even after i told them i didn’t want to pay over $450 because i only make $1500 a month. Well my interest is outrages and my payments are high. Well I talked to someone recently, they told me all of my payments have been going to my interest and none to my principle since March 2016, now mind you i got the care in October of 2015. I have to do something because its getting crazy. I think i just might fix my engine and turn this car back in because my other car is paid off.
Chrysler did same thing to me. I like 2 year of payments of 635 a month on 7 year loan. lost good paying job due to no fault of my own , job out sourced. Can’t pay on minimum wage.when banks felled lost my retirement. Having to volunteer repo of it. They want help or refinance.
Same situation, I want to be part of this or start another suit, I lost my life cause of that firm, my car was repossessed, payments at 24.5%, lost my job, my home and my sanity. 535.00 per month for a 22,000 car, knew I was desperate, I agreed to the payments cause I had to keep my job, I trusted the human who knew I was week. How can greed let someone get away with breaking the law, why do I suffer and they still sell cars under crystler capital
The case is still moving through the courts and has not yet reached a settlement. Claim forms are usually not made available to consumers until after a court approved settlement is reached. We recommend you sign up for a free account at TopClassActions.com and follow the case. We will update the article with any major case developments or settlement news! Setting up a free account with Top Class Actions will allow you to receive instant updates on ANY article that you ‘Follow’ on our website. A link to creating an account may be found here: https://topclassactions.com/signup/. You can then ‘Follow’ the article above, and get notified immediately when we post updates!
My husband and I purchased a 2015 Chrysler 200 Limited the end of October 2016. Our payments are 395 a month. The car was 15,000 and the interest alone is almost 13,000. Roughly thats 28,000 for a car that has been nothing but trouble since day one. I love how they regret to tell you that an oil change is 80 bucks or that your tires are 500 bucks a set. This car is a nightmare. When its cold outside the transmission slips between 2nd and 3rd. Within the first month of buying the car, the battery died. Theres another 120 bucks. First oil change and detail was suppose to be free. Well it was free but they didn’t detail the car at all. Just changed the oil. Then we’re going down the highway 65 mph and everything dies. No steering, breaks, no nothing….scary. I wanted outta this car but since or loan is so high we can’t get out of it! We purchased this car because at the time I was pregnant and we needed something reliable…..the 1998 Chevy Blazer we had before this was better. We would of just spent the money on fixing it and it would have been cheaper than this death trap on wheels. We’ll never by Chrysler again.
I’m paying 620 a month with a 26 percent interest rate. Taking advantage of my life
The same w me. Since 2013, I have paid 737 a month with a 17% interest rate. They are saying I still owe 29,000, there is no way. I was told that after a year they would refinance mt loan with a much lower interest rate. That was a lie.
I need a car to get back and forth to work. I went thru a dealership that’s connected thru Chrysler Capital and they sold me a car at 520 a month at 18% interest. I only make $1060 a month and I had a really low cc score when me and my friend went to get it. I’ve been drowning in the payments ever since. Is there any way I can get advice on what to do?
Omg they are doing this to me as well.
Plus, gap paid my car off but Chrysler says I owe another $5,000.00.
Plus, they call me all hours including mothers day of this year!!!
PLEASE tell me how I can get in on this lawsuit. I am fed up
Chrysler did.the same thing to me. I paid $354 for 3 years with an interest rate of almost 20%. The car was a lemon when they sold it to me, caused me to have an accident the throttle body was bad, that almost killed me and my daughter. The following year the tranny went. It was one thing after the next. They repo’s my car and sent me a $13000 bill.
sandy, same thing happened to me after 3 years of payments, what happened after you received the bill?