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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
Happening in Vegas too. My son got an older bmw price 18,000. Almost 600.per month he paid. He couldn’t do it anymore. The car broke down several times he could afford to fix it anymore and pay the monthly payment. He asked Chrysler financial for help. They said nothing they could do. His final payment would’ve been October 2019. He surrendered the car. They sold it for 4,000.00. They are telling him he owes them 10,000.00.
So that would mean the loan would be over 40,000? How’s does that work. Gotta do something!!
Read you contracts people. You don’t have to sign them. they don’t put a gun to your head. Take ownership. In this case, its illegal to finance above 16%. At 23.67% that is illegal. Cut and dry. Now if you signed a contract for a high interest rate that is within limits of the state you need to honor your agreement. Even at 24%, or don’t sign the contract.
Same here, I called and asked them I have a 2013 Chrysler 300c had it since 2014 623.00 a month, still own 20,000 in sc ain’t no way they are a RIP off! I’m starting a class action suit against them in sc….and the car was used!!!
Same here in Missouri victim of predatory lending over paying high interest rate
I have 2013 chrysler 300 for 5 year. I buy. For 30000$ i have to pay 480000$ for 7 years 578$ they add 18000$ almost double i dont know how they do it and i always have probleme with bank specualy the insurance. add me pls
People should stop signing contracts at payments they cant afford. You can protect yourself people. Just say no. But people want a car and they want it now. Show some restraint. If you can only afford a cash car. Get a cash car. You don’t have to finance your life away for instant gratification. If you cant pay $500-700/mo for a car why are you signing the contract? If you have no credit or bad credit you shouldn’t be trying to purchase a $20,000 vehicle.
Chrysler Capitol is practicing the harrassment of elderly, disabled, and low income. They need to be reported to State Attorney General office. They will reposses a vehicle and then for years harrass the individual. They coerce in shady contracts and then harrass folks with law suits and using County Courts for their harrassment. Do not use Chrysler Capital under any circumstances. They need to be not only sued but investigated as well.
What about paying all your payments having proof of payments and Chrysler capital telling you the first car payment made at the dealership was money down not a payment and then they attach late payments to your credit when the paperwork says first payment they are crooked trying to get extra payments don’t use them it’s a nightmare
Chrysler Capital needs the pants sued off of them. They are one of the most crooked outfits in US
Hello everyone, How can I get in on the class action suit? I was done the same exact way in the safe of California! My interest rate was 25.75 percent. I was tied upside down in my car loan, I could not trade the car in nor could I refinance the car, the car I had was a 2015 Jeep Patriot and no it was not loaded at all. No electric windows no air conditioning, no gps or anything. My note every month was 575.31 I took my car and contract to another Chrysler dodge and the manager over at that particular one told me that my contract wasn’t even legal do to the fact that it is illegal in the state of California to have an interest rate of 25.75 percent. I bought the car in 2015-2017 please help
Also instead of me owing 10,000 for the 2015 Jeep Patriot I was owing over 50,000 do to the 25.75 percent interest rate Chrysler illegally gave me because in the state of California it is illegal to charge a customer over 24.99 percent in interest on a car loan. Keep in mind the Jeep was not fully loaded it was a plain car also had no air conditioner so me and my small sons suffered in the summertime in this Jeep so to the face it had no air conditioner someone please help us all in this class action lawsuit against Chrysler Capital. This has got to stop, I also have a neighbor in this same position, from the same people Chrysler Capital overly charging customers and beyond high interest rates, which is illegal in the state of California.
This case was a New York case, and the judge declared that there were no violations of New York state law taking place. We’re sorry we don’t have better news for you.
We offer a submission form on our website for you to fill out if you are seeking class action legal help. Attorneys will then review your submission to determine if you have a case. If they feel you qualify, they will contact you directly. You can submit your information here: https://topclassactions.com/start-a-class-action/.
Can my daughter and I get in on the law suit. Our payments double. We brought from different dealerships but we are paying on interest and cannot even trade
I got did way worse and now being forced to surrender my 2017 journey I bought for 18,000 after rebates with 24%Apr and 75 months of 725.00 it says I am gonna end up paying almost 60,0000 on it and I had it at the dealer over 1 month getting new cylinder heads and a rebuilt transmission and it still knocks and transmission still slipping. I still have it but they want me to pay today or give it up. Corporate is asking me to fax info but customer service says it’s sending repo man today to pick it up so they sold me a new lemon with a ridiculous monthly payment and high Apr because we were in a really hard spot at the dealer and they scammed us and got away with it
Top Class Actions we need help, I cannot afford to keep paying like this and the recalls and the value of this car since Nov 2015 has severely dropped
This case was a New York case, and the judge declared that there were no violations of New York state law taking place. We’re sorry we don’t have better news for you.
We offer a submission form on our website for you to fill out if you are seeking class action legal help. Attorneys will then review your submission to determine if you have a case. If they feel you qualify, they will contact you directly. You can submit your information here: https://topclassactions.com/start-a-class-action/.
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.
Same situation, I want to be part of this or start another suit
I financed my car in 2015… almost 3 years later and I still owe the full balance. All payments go to interest.
SAME thing is happening to me!! I bought my truck in 2015 and the payoff is exactly the SAME! How can I still owe $30,000 when I have been paying $815.00 per month for 36 months!!