Lobel Financial / Fraudulent contract

CA, United States Review updated:

My husband and I went to the dealership to see if we could get a car financed. We had $4500 for a down payment and they put us into a car that I loved. They called me back to return the car because they couldn't get us financed for that car, no big deal. So we didn't see anything that we liked and asked for our deposit back so we could go elsewhere. They insisted on getting us into that car. They were finally able to get us financed with Lobel Financial. Lobel called us about a month later to verify the validity of our income documents. It was at that point that we had discovered that the dealership had made false/fraudulent pay stubs for my husband, who didn't have a job. They just made up fake pay stubs so that we would qualify to be financed through Lobel. So once we found this out from Lobel, we asked if they would let us cancel the contract and return the vehicle to the dealership since the contract was accepted based on falsified documents provided by the dealership. They told us No. The reason, because we had both ( Us & Lobel) already signed the contract so they wouldn't let us out of it. Well, this was in Nov 2010 ( we had taken possession of the vehicle in Oct 2010). I had made my scheduled payments and had fallen behind on one month in June. I had called them to make some type of payment arrangement and they were fine with the arrangement, from what they told me. The day after I called them with the payment arrangement, they repossessed the car. I wasn't even 45 days late. The repo people who came and got the car were very nice and apparently they had once been financed by Lobel, and they also had their vehicle repossessed by them, they were only 2 days late on their payment. They had also called, it seemed like everyone on the face of the earth. Even people who were not references on our application/contract were getting phone calls from them. They would apparently ask if the reference person knew how to reach us and then would just hang up. I don't think this business is very ethical in their dealings with applicants/borrowers. They wouldn't let us out of our contract, even knowing that the dealership falsified our income documents. They aren't in the financing business, they are in the business of repossession.

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  • Gr
      Aug 28, 2011

    Lobel probably made up the entire story about the dealership submitting false documents. Lobel only pays the dealership 75 cents on the dollar for the contract, then sues the dealer when you miss a payment. Plus Lobel has employees verifying the information they receive from the dealer.
    Lobel has had multiple class action suits filed against them. Lobel, in turn, has sued thousands and thousands of unwary consumers. Their in-house counsel, Ronald Green, lies to court judges whenever it suits him. However, atttorney Ronald Green appears to be just another product created by the Lobel's to defraud both consumers and dealers.
    Ask Governor Jerry Brown why he only gave Lobel a slap on the wrist when AT&T discovered Lobel was fraudulently obtaining consumer phone records.
    Then, ask Lobel if they stole the Sales Tax you paid the dealer to buy your car. That will get their attention.

    +1 Votes
  • Gr
      Aug 28, 2011

    You may also want to verify that LOBEL FINANCIAL complied with California’s stringent laws concerning the repossession of your vehicle and the subsequent notice you were required to receive. Contact an attorney if you have any questions.
    These same post-repossession notices were the subject of a series of class action lawsuits heard in Sacramento Superior Court (LOBEL FINANCIAL Auto Cases, Case No. JCCP 4563). On March 26, 2010, Judge Michael P. Kenny issued preliminary approval of a class action settlement collectively resolving the matters after California consumers Ivon Lara and Jaime Penuela filed separate complaints against LOBEL after LOBEL FINANCIAL sued each of them for a deficiency balance on the repossession of their vehicles.
    LOBEL general counsel, Gary Dean Lobel, declared that there were 9, 159 consumers whose outstanding deficiency balances totaled more than $43 million. LOBEL agreed to halt all collection activity on those accounts. LOBEL also agreed to waive the entire $43, 808, 147 in alleged deficiencies and to delete consumer credit reports of LOBEL FINANCIAL trade-lines.

    +1 Votes
  • Ni
      Sep 06, 2015

    I too have been through the ringer with LOBEL, I will be filing suit! Every other complaint can be quantified or verified by me, because it all happened to me too.

    +2 Votes
  • Sh
      Mar 31, 2016

    My nephew has been a victim of lobel financial and they have proven to be a unethical and fraudulent company. I would love to assist or get my nephew involved in a class action lawsuit. This behavior and horrible business practices can not be tolerated. If consumers stick together and continue to pursue fair and ethical business practices than eventualy lobel finiancial will fail. Business' can only take so many lawsuits before they fold. Please contact me at [protected] if anyone has any information reguardung a current lawsuit or would like to be involved in creating a new one. Thank you so much.

    0 Votes

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