OCR Text |
Show Auto owners warned of payment 'help' from illegal equity promoters "Auto payments too high? We assume." "Can't make your payments? We can help." "Credit problems? We can get instant credit approval and you can drive away today." Auto equity promoters entice consumers with ads of this nature into foolish, if not illegal, actions. First, they attract consumers who do not wish to continue making payments pay-ments on a vehicle-for financial or other reasons. Second, they attract consumers with poor credit who have trouble qualifying to purchase . a vehicle. The promoter promises to continue payments on the vehicle and then "subleases" or "sells" the vehicle to the prospective purchaser, pur-chaser, usually charging a brokerage broker-age fee andor a surcharge on payments. pay-ments. Ownership never changes hands and the original owner still , bears all of the legal responsibility . for the vehicle and related debt. - The promoter acts as the middle man between the two parties and bears no liabilities for default or loss of the vehicle. If the subpur- chaser or sublessee does not make payments, it is the owner's prob-. lem. Other questions arise concerning concern-ing insurance, theft or illegal acts. For example, what happens when the sublessor doesn't pay parking tickets-or even worse-is involved in a hit and run accident? Whatever the answer is, it will be a tricky situation. si-tuation. In almost all cases, the lending institution is kept in the dark as to the transaction. Under the terms of many lease or purchase contracts ' this is illegal and a violation of the contract This violation is usually grounds for repossession of the vehicle. ve-hicle. , i The lending institution may repossess re-possess the car for non-payment or violation of the contract In this si-' si-' tuation the original owner or lessee may lose the car, owe any balance due on the contract and damage his or her credit rating. .The Better Business Bureau has a brochure entitled "Auto Equity Promotions" available. For a free copy call 487-4656. : ' ' '" |