WHAT? First, they can. Second, say they did, how would anyone know to open a “flood gate” of lawsuits. Third, they actually have a known “loyalty price” they would have allowed me to sell the car for. (If I used US Bank again) They could have just said we will allow you to use the “loyalty price” and it would have accomplished the same thing. Forth, they are in fact now offering it as a settlement. I’m rejecting the offer because now there is only 3 months left, not 6, when it was my offer to them.
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Sure, as long as you agree I have a right to FULL DISCLOSURE, under the TILA, CLA, Regulation M.
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There is wayyyyy too much attorney talk in here. What is a yoot?
Maybe you didn’t read it all, but that is one of my Counts in my demand.
You are correct. Private settlements are confidential (and you can be held liable for unauthorized disclosures if you accept and sign it), so no ‘flood gates’ would open if they didn’t act like morons and settled your demand on amicable terms. In fact, it would save them a trouble of going through arbitration, if you elected to pursue one.
One word of suggestion: draft a legal complaint or legal claim (if you are bound by arbitration clause), ready to file. It has to look like a real claim/demand ready to file with official court or arbitration body (not a litany of emotional grievances scribbled on a napkin) , This will trigger a transfer of your claim to their in house attorneys. Attorneys are easiest people to deal with. The ones who answer the phone and speak with you and hold positions occupied by high-school drop-out are morons. Many of them are feeling personally obligated to ‘punish’ you for ‘immoral sins’ of exercising your rights under the law. You owe them and must be forced to pay what they say (“we are in control here, obey! pay!”) . Those morons are not capable of rational, critical thinking and assessment of the individual situation (including the cost to bank for their moronic actions). If your claim gets transferred to actual attorney versed in law, odds are they will settle with you immediately to avoid any further costs and possible arbitration dispute. But you have to do something to trigger transfer of your file to their attorneys. Drafting a detailed complaint with references to terms of the contract signed and governing law will do the trick. Sometimes it won’t work (attorneys will simply ignore you until you file actual claim and elect to arbitrate), but most of the time if it’s an easy matter to settle they will reach out to you directly and put everything at rest.
Absolutely. And the contract specifies you don’t have a contractual right to a 3rd party sale, which is what a trade in is.
You get full disclosure of that in the contract.
The demand (as the complaint is called in arbitration) has been drafted and filed, with AAA. An attorney has been assigned. Settlement negotiations have taken place. They have paid the administrative fees. We are due to have an arbitrator assigned on the 6th of next month. That’s when they will have to pay the big bucks, for the arbitrator.
I offered them a settlement of basically, just take the car and if I owe nothing additional, I’ll dismiss.
They said no, but they offered $2500. And then I could trade in my lease using the $2500 to make up the difference. I countered, I’ll take the $2500 as long as I could do the early termination clause in the lease and my liability was $0. They said, and I’ll quote the lawyer…
"I don’t believe your demand is realistic, as it would essentially expose U.S. Bank to a loss in the event something happens to the car or to the market prior to the time the car is turned over. "
To which, I reminded him, I had full coverage and would keep it until they picked up the car. And as for the market, they could come get its (or I could take it to the dealer), ASAP. And I remined him doing an appraisal 10 days prior is all laid out in the contract anyway. They said no.
So I just turned in the car anyway, following the early termination process. Waiting for the final bill. If it’s zero, I’ll go back and say, ok, now I’ll take the $2500 to settle. We’ll see.
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You never mentioned anything about an appraisal. Here is what you said and what I was responding to…
“US Bank should say, Well, we (the bank) know the estimated realized value is XYZ (They know it because that’s the price they use to set what they would sell it to a 3rd party for) and since that’s greater then your liability, you can exercise the early termination clause and owe us nothing”
And no, they don’t immediately know the price that they would sell (realized value) to a 3rd party in advance of doing an appraisal or selling it at auction unless they have a crystal ball.
Your contract states… “Within 10 days of early termination, you may obtain, at your own expense, from an independent third party… “ That’s not the same as immediately known.
Perfect! You did all the right things, Wish you good luck.
Hmmm. lots to unpack here. Just a little about myself…
I’m a mathematician and former actuary and have been certified as a court expert witness on TILA (Reg. M applicable here) back in the 1980’s. Years ago, I owned a lease education website. I’ve created sophisticated leasing software (both in Mathematica and EXCEL) that computes every lease calculation that you’ll ever encounter by any fund provider. That includes calculating early term charges whether it’s Honda Financial, GM Financial, Chase, Ford Motor Credit or US Bank etc.
I have to disagree. I’m not wrong regarding my early term calculations as I was using a US Bank except unless, of course, you can show me where I’ve made a mistake. Good luck with that. You never supplied me with the specific fees and so I was speaking in generalities.
You also said…
Well, geez, this is a new revelation. I was adhering to the US Bank contract. How would I know that’s their policy with little time remaining on the lease? I don’t have a crystal ball and can’t get inside their head. However, that’s very nice of them given that they don’t have to do that per the contract.
You never provided any of this information before and now, suddenly, you’re telling me that they’ll waive all fees and accept your $1,200 lease balance plus residual – realized value… That’s good news. However, you can get an estimate of the realized value by going to a variety of sources including Vroom, Carvana, TrueCar, Kelly Blue Book, Black Book Black Book Weekly Values Lite (blackbookportals.com) You can gauge whether the realize value will exceed those termination charges. If it does exceed, you can roll the dice and pay for a professional appraisal done by someone with whom US Bank agrees. You really need to do your homework on this one. Please be careful.
I talk about it in my original post and other posts. I assumed you read it.
You are wrong because you failed to include the early termination fee. And you are including excess wear/tear charges. They are not part of the formula.
Once again, we have a breakdown in communication. You’re all over the place. I was responding to a given post wherein you said…
THIS IS WHAT I WAS RESPONDING TO… THAT AND THAT ALONE… There is no mention of an appraisal except ELSEWHERE. I wasn’t even thinking of an appraisal WHICH TAKES TIME TO DO.
You definitely need to review my original post. And I ask, what specify do I need to be careful of?
You need to take the whole thread in its context.
Ah, no I don’t. I was responding to that particular statement. I even quoted your statement. I’m not going to spend time hunting all over this for things you may have said. How would K have known to do that in this instance?
EDIT: Rearranged text.
But you realize the statement you were responding to was a response itself. Therefore, the whole conversation must be taken into context. So yes, we are clearly having a miscommunication, cause by you cherry picking out a reply I made to another.
Here is what I said…
“they charge you the remaining depreciation payments plus the residual value plus the termination fee + any excess wear/tear charges + applicable taxes + … as I’ve outlined for you in my post above IF the vehicle is NOT purchased.”
So, yes, I did include the early termination fee. I had no idea of the dollar amount until you supplied it and, other information in a much later post! However, you are correct to the extent that there are no excess wear/tear charges. I just wasn’t thinking. Sorry.
Wow! What on earth are you talking about… “a response itself” What does that mean? I was a statement you made within your post.
You only include a single mention of Termination Fee and I assume you are referring to the actual Termination fee, not the Early Termination Fee (Actually called an Early Termination Administrative Charge) So there are TWO Termination Fees involved, yet you only cite it once.