08-07-2009, 07:48 AM | #31 |
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In any other situation, this would be considered extortion. What they are doing is no better than paying the mob for "protection". They are demanding payment for non-existent losses, that may NEVER occur, and holding the money they owe the dealers as hostage. There is no legal way they can demand payment--in advance--for losses that haven't been incurred, but they are bulletproof because of the BK situation. If the dealer refuses to pay them and they take it out of what they owe the dealer, the dealer's only recourse is to sue them, and both sides know that they are judgement proof. No different than an armed robber telling his victim to "give me your wallet without a fight, and I'll let you keep your watch". On top of everything else, they know the dealers will never see a dime of that money refunded, because CFC won't even exist by the time all the contracts have been paid off.
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08-08-2009, 08:55 AM | #32 |
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I think Chrysler Financial needs to be investigated on this issue . It seems illegal to me . I was told they can not change my amount which is way too high considering I wrote all my gap;life/a&h warranties with another company. We need some help on this with the NADA and Congress
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08-08-2009, 09:27 AM | #33 |
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NADA will not help with anything, except collecting dues.
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08-18-2009, 01:42 PM | #34 |
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It was suggested to me to take the 75% choice since we haven't funded a contract with CFC in over 6 months therefore the potential chargebacks should be much less than the 2 year average they are showing. I think this 2 year figure is inflated anyway since we can recoup some of the chargebacks on service contracts and gap.
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08-18-2009, 04:58 PM | #35 | |
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I think for some dealers they're willing to write the "walk away" check so they never have to think about CF ever again. |
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08-19-2009, 04:20 AM | #36 |
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I agree. I wanted to not pay anything and take my chances with chargebacks but that was not an option so I decided to pay the full "Walk Away" amount which was an additional $600 just to be done with the dirty *******!
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08-20-2009, 04:36 PM | #37 |
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I posted this in the wrong section. I think it is better suited here.
For those Chrysler dealers who had the "walk away" conversation. I looked into the deal. First of all it only applies to those dealers who have had their floor plans with Chrysler Credit. If Ford Credit was your primary source, there are no UCC's on your business. They will all be secondary, and it won't affect any financing options you might need. The other part that is really dirty pool on Chrysler's part is that the walkaway was set up so the dealer could walk away and sleep at night. HE was given the option to pay the "walkaway" amount or stay with the portfolio. It was not set up for Chrysler. They are just trying to grab some cash. They have no right to that money. Ask them for the agreement. I would be surprised if it contains any such language. |
08-20-2009, 05:49 PM | #38 | |
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You make an excellent point concerning which party originally intended to use a "walk away" provision. I'm sure when the dealers signed those documents they never envisioned a day when CF would be split-off from Chrysler and left to die. |
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08-21-2009, 04:57 AM | #39 |
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Does it make any difference that for Oldco Dealers, all contracts were void on June 9? If you signed, or not, THEY voided the contract. Does that matter?
If the tables were turned, would they honor a void contract and pay us? I doubt it. |
08-21-2009, 07:39 AM | #40 |
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Update: I was told to make a decision by the end of Aug.. I have contacted my rep. again and again over the last week to see what (said she would have an answer for me a week ago) she has found out about our 1,000 being held from day one. (I was going to apply that towards my 75%) She called back earlier this week to inform me that there has been an urgent issue with CFC and my inquiry has been put on hold due to more pressing issues. I called our GMAC rep to research if it would have an impact on us getting permanent financing. He replied "Yes". Still waiting for reply on our 1k. Anyone else have an update?
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08-21-2009, 07:57 AM | #41 |
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The CFC letter says they are offering the Dealership the "OPTION" of.......
Why not just don't take the option? |
08-21-2009, 08:08 AM | #42 | |
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In fact, it will be interesting to see how many of the dealers who had written "walk away" checks will want their money back and go with Option 1 instead? I wonder why CF is making the change and allowing dealers to use the "pay as you go" option? After putting up such a fight it seems strange they would change their position. |
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08-21-2009, 08:12 AM | #43 |
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If you do a "walk a way" check, and it is not used up, there is NO refund.
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08-21-2009, 08:27 AM | #44 |
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My first thought on why CFC would change, is because nobody was going to pay the "Walk a Way". Or at least, Oldco Dealers were not.
They may feel at least there is a chance with an option, albeit slim to none. |
08-21-2009, 08:43 AM | #45 | |
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I'm wondering if their change in policy is due to some political pressure? I doubt that it's rooted in their concerns for dealership cash flow because of the CARS program as was stated in the letter. |
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