BMO Shuts Down Auto Loan Business

[richaceg]

Meanwhile BMO just raised my credit card limit...

 

[poker]

Car buyers say dealerships duped them over TD's costly loans | CBC News

“I feel very misled and deceived,” said Ashley Franson, of Pitt Meadows, B.C., who said TD has since refused to give her a lower rate.

Go Public first reported on the high interest auto loans when a B.C. couple came forward to say they felt misled into a 25 per cent interest loan from TD.

The customers are being charged between 15 and 30 per cent interest, over terms as long as eight years, on their subprime car loans.

“I questioned the high interest rate and that's when I was told, ‘Don't worry about that. You're going to be refinanced in a year and your interest will be lower.'”

Franson has two children and works full-time as an administrative assistant. Several years ago, she said she was saddled with debts a former spouse racked up in her name, which damaged her credit rating.

In 2011, Coquitlam Chrysler sold her a 2009 Kia Hatchback for a sale price of $11,085.

The dealership arranged financing from TD at 22.92 per cent annual interest. Including all fees, charges and interest, the total cost to Franson was listed at $27,182 — more than twice the selling price of the car.

“It makes me sick to my stomach,” said Franson, who estimates her car is now worth $5,000. “It keeps me up at night because I'm paying more in interest than what the loan amount is.”

Do a consumer proposal and keep the car at that point. Holy crap.

I refuse to pay more than 8% on auto loans.

 

[icynaps]

Meanwhile BMO just raised my credit card limit...

They must have seen your signature picture on this forum and decided to raise your limit ;-) Awesome, thanks for sharing.