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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
Still paying car off what a rip off, sign me up
Same here interest rate is what I was paying and the value of the car seems like it went up. I was told that it went on my credit then I see it’s a class y suit against. And still getting harassing phone calls about payment…sign me up I need my money back
Noticed 100% of my payments been going to interest only. Had loan for over a year and 10 day payoff is only about $250 less than my original purchase price. Did the math and I paid near $7000 in payments though. Opt me in if not too late.
How do I get ahold of someone to part of this lawsuit! Thanks for any information you can share.
Please add me! I owe $2500. And I pay extra every month and it seems like it’s not moving. Now I get an email and my account maturity is December 20,2020. They offered to extend it to March for the same amount every month. I swear they rob the poor and vulnerable
Count me in! Predatory loan. was laid off and had to file bankruptcy. the interest is ridiculous and I am seeing on my statements where 100% of my payment is going towards interest for several months. no I wasn’t forced to take the loan, but in a tight spot I was absolutely taken advantage of and now I’ve had the car for a year with payments over $400 a month and we’ve apparently only paid off $700 of the loan. how!?
I’m noticing some problems too. Can someone please tell me who to reach out to just to make sure these people are not getting over on me. Especially doing this pandemic. I’m trying to pay and do right but, I just don’t think Chrysler Capital is doing right by me!!!
I wont do business with you ever again.
I had a loan, payed it off. Still reporting as if I’m 30 days late. Was never late. A $4 fee carries over and they didnt state it was on my credit. It was. I paid on my truck for 8 years. The last 4 months, they say I was late. Destroyed my credit for $4. Very bad business practice.
I went through s divorce, and havent been late with anything in 3 years. They say to dispute, when its actually a very scandalous situation. I’ve had to hire attorney. Thanks Chrysler Capital
Oh yea, good luck getting any help after you’ve paid the loan off.
I too was scammed and financially raped by Chrysler Capital. I bought a used vehicle, financed it through Chrysler Capital and I was paying 2 payments a month, I was paying over the amount owed but the payment was not applied to the principle. I was charged 70% interest .. and they too were in violation of the USURY LAWS but seem not to care. I am still paying on the car, and my payment period was suppose to end last November. I took my payment history from my bank to a bank and she had never seen anything like it.. They are suppose to pay principal first for early or over payments but they did not .. I am sick of paying for a vehicle that is not worth what they say I owe on it, even though I have paid now for 4 years,.. I would love to be contacted.
Please, please help.? This truck was purchased in Alabama and I reside in GA, there fore was told I didn’t qualify for settlement although I am yet a victim of Usury Law violation..
Wow! Seems this car will never get paid off even with timely payments bc the interest is so high?
I’m interested in a class action lawsuit against them as well. We have been on you by on our car for years , 3 to be exact and have barely paid on the car. Majority of our payment goes to the interest so we basically still owe the full price of the car. Never seen something like that before. It’s unethical and unconscionable.
I’m in the same boat back in 2018 I sign for a 2018 Jeep Renegade not fully understanding just needed a car for work etc. my APR is 18% basically I’ll be paying back $47,000 on the car
Same happened to me on a 2018 Renegade and now they have charged off the debt and aren’t even trying to look for the car.
Same thing happened to me in early 2017. I have been paying on the care since 2014. I was paying the interest rates only. The car got repossessed due to me leaving work due to a complicated pregnancy. I have in formed them of it and they still did not care. It was eventually showing on my credit as charged off and they still put to my credit negative reports of me owing 10,000. After I found out that they have sold the car already.
I purchased a vehicle and tried to give it back from them,they have no record of it and don’t know what to do with the car.it hasn’t been registered
Same here interest rate is what I was paying and the value of the car weems like it went up. I was told that it went on my credit then I see it’s a class y suit against.
Same here my payments was only going towards the interest and it wasn’t taking my payments down..I was always giving the million answers on why so much in interest
I bought 2014 Dodge already paid 38, 400 and balance is 25,000 and the price truck was sold for was 22,000 so I’m paying a total of 63,400 I’m thinking very serious letting it go back that observe
Need to talk someone in class action suit against crysler
I am looking to do the same thing may have a lawyer in mind but need more people that was put in the same are similar situation. There dealership were I went was doing fraudulent deals and the bank knew of it but me being a car buyer who’s new to buying a car. Had no knowledge of such reports. Although I got financing I was charge outstounding apr rate.
i bought a new 2015 in 2016 Jeep Renegade and on 22000 I will have paid 42000 when paid off. 23.3% interest rate. I cant trade it in because I owe more than the Kelly blue book value
Same here
Same here looking to start a suit myself
I’m in the same boat. I just surrender my car . Was told it will take other two year just to Pay off just in interest rate . And they the value of the car is not worth what I owe it more than double what the car worth.
I’m going through the same I’ve been paying 23% interest for for 3 years now. My car payment is 677.15 a month and all of it goes to interest! We need to do something because this is illegal
Yes I will love to join I must say I totally understand I’m currently going through the same thing today I really need to speak to someone in the class action
Wow same thing with me been paying this car loan since 2015, 72 month interest rate over 18percent, then they had the nerve to charge off the debt, wasn’t 180 days late by NYS law, I am so sick of Chrysler Capital I even asked to refinance, they said no, I am contacting the FDCPA,CFPB every I advise the same. I am willing to start this class action lawsuit
I am a victim of fraud and predatory lending I’m in it with you this company has to stop ✋?
This company is horrible and something need to be done… count me in
You can sign me up too I have a car loan through Chrysler capital I got help from the leukemia society because my son is t cell leukemia they sent in close to a $2,000 check and they put it towards interest and principle and they said they can only use it for 3 months and the rest went into interest and principle and it’s been the same price since September when the check went in same price I still owe the same amount $14,231 same amounts in September even when they got that check from the leukemia society I’ve been sending in weekly and it’s all going towards interest and I emailed them and I said how am I supposed to pay something off when you keep sending it to interest so when my bill was behind I had to sign another freaking thing they said or they would have repoed my car I need a car to get to Albany for my son’s chemo so please sign me up for the lawsuit because I think I’m getting ripped off too cuz every bit of money I’m sending them is just going to interest and not going to the loan itself
Gap is a joke with Chrysler. Almost lost my Daughter due to being hit from behind by a careless distracted driver. Chrysler has yet to send paperwork to Gap Company after vehicle was totaled. Would never buy another Chrysler product ever