Dealerships open a second loan on trade-in vehicles instead of unwinding the original contract
When a customer returns a financed vehicle, a dealership can open a second, concurrent loan with a different lender rather than properly satisfying or unwinding the first, then sell the vehicle and keep proceeds from both loans. The original lender then charges off the unpaid balance and sends it to collections against a borrower who no longer possesses the car.
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Similar Problems
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Problem descriptions, scores, analysis, and solution blueprints may be updated as new community data becomes available.