Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
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.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
103 thoughts onChrysler Capital Sued in Auto Loan Class Action Lawsuit
Me and my wife bought a 2015 ram 1500 last year, I just found out they charged us 4200 over the past 6 months for late payments. Does this sound right to anybody or is it just me?
Please add me! We have been paying on our 2007 Acura since 2015 and still owe $4000.
Never going to get out of this loan the keep giving extensions and high payments
Sorry please remove my last name from my previous post.. Didn’t know it would be published.
Thanks
If anybody actually starts or can help with chrysler capital car loan .purchased a 2014 dodge charger my loan was for 7 years the maturity date is Oct.2021 we thought thank you god see im currently not working after accident i had at work so i thought ok oct one less payment one 780 dollar payment. Just to find out we still owe over 8900 dollars still what . to be honest i was very surprised i qualified for this loan but know i know why . please if anybody knows anybody that can help let me know
Rip off I hope they get caught This business has to be illegal There’s no way Chrysler Capital can charge people three times of what ur car was originally purchased for…..
Hey, me to. There are whole company of untrained and young employees with no backbone. Not there fault but stay at home with minimal people skills or a working knowledge of English language. I received few times deferred payments now they know before the 90 questions over and over. No. What can we do
My daughter and I both have our cars financed through this company. My daughter signed an agreement to finance herJeep Cherokee for 7 years but her payments are still high. I bought a used Jeep Trailhawk 2015 for $15.000 but after the financing it was $21,000 for 3 to 4 years. I have paid the $21,000 but they my account due to none payment and has caused my credit to look worse. We need this Class Action Suit to be revised. They are still conducting business as usual.
Sing me up as well. TN.
Yes my fiancé is getting ripped off we bought a ram in 2017 are payment is 867 and paid for four years and we still owe 31000 and we have paid 41000 already and the loan was for 38000
I would like information on this Class Action. Our loan has “Matured” with Chrysler Capital and they will not help us secure any type of help and we still owe $11,181 on our 2005 Mustang!! They have told us we need to pay $9450 to “Advance” the loan, but they usually don’t see Chrysler Capital doing a modification or refinance on a loan over $6000. So I asked what would happen if we could come up with the $9450, which we can’t. And I quote!! “That will only advance the loan 30 day’s, we still couldn’t help you and you would still owe the $11,181.” Say what??? If I pay the $9450 that should bring the balance down to around $1730 shouldn’t it?
Chrysler Capital has been allowed to run amuck long enough, something need to be done about them. Now our credit is so bad, we can’t go anywhere else to get a loan on the Mustang, not to mention we owe far more than the value!
I would really like some help with Chrysler Capital!!