Serious Issue with a Kia Dealership in KY

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Aug 3, 2018
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#1
I know this is long but I wanted to be factual in this post.

I have a very serious issue with a Kia Dealership in Florence KY. On February 24 2018. My husband and I made the 2 ½ hour trip to finally purchase a car. I had been communicating with the sales representative for several months making sure he clearly understood our situation, type of car I was looking, and the price range that I felt comfortable with, so the payment would be within my budget. My husband was very skeptical and insisted that we get some type of pre-approval before he would agree to drive that far away when we have Kia Dealership within 30 minutes of our home. I had gone through True Car to get the best price and they directed me to the dealership in KY.

The week prior to Saturday the 24th I exchanged a series of emails with the sales representative including giving him permission to submit the loan application for us ” “since we were so far away and couldn’t physically stop in he would do it on our behalf if that was ok with us so he could get the pre-approval and we would be good to go”. So, I agreed. I provided paystubs, W2’s, proof of residency you name it I scanned and email it. We were looking for a car in the $10,000-$13,000 (specifically a Kia Forte Koup). He had indicated they had just gotten one which was perfect because that’s the type of car I wanted. When we arrived at the dealership the salesman immediately took us outside to look at a new 2017 Rio and indicated that when he submitted the application for the pre-approval he had listed a Forte or a Rio. I was very specific about what I wanted, and it wasn’t a Rio nor did I want a new car. So, I politely said no thank you.

About 30 minutes had passed he returned to tell us that the pre-authorization he had for us had disappeared in the computer and they “couldn't' get it back”. He left again and was gone for a long time and my husband said “Terri, somethings not right here” and when the sales representative returned he had “good news, he had us approved for a brand new 2018 Kia Forte!” My husband said no, we just want to look at the used cars, that's what we came here for, we’ll just look at those. We were told that a used car wasn't possible now since the pre-approval was gone and the only car we could buy would be the 2018 Kia Forte and you do want a car, right? We reluctantly agreed only because we were a long way from home and by this time we were three hours into being at the dealership. At some point in this process of the pre-approval suddenly vanishing and new application being resubmitted at the dealership (while we waited) the new lender wanted all the documents submitted to them which I agree to do on Monday.


Once I was able to speak directly with the lender, I decided that if I didn’t want any more documents to suddenly vanish it would be best not to send them through the sales rep. It was during the last stage of the approval process that I was asked by the lender additional income verification over and above what I had already provided, it was at that time that I became aware that our income had submitted as $50,000 on the credit application and the underwriters would likely deny the loan if I couldn’t come up with difference of what I had provided verification for and what was on the loan application. I immediately requested copies of the loan application from both sources both the dealership and the lender. According to the sales representative, he did not have access to that information. The phone calls and text messages that came into my phone the following week border lined on harassment. Some of which were anonymous with a refusal to provide names and association to the dealership. In March I sent emails to the General Manager and the Director of Used Cars (sons of the dealership's owner) detailing our experience and asking for their assistance to resolve the issue, there was no response.

In April we began receiving threating calls threatening arrest for stealing their car. I called Kia customer support asking for their assistance. Representative #1 took detailed notes and said this was a very serious problem and while the dealerships are independently owned the dealerships do represent the Kia brand. She indicated that the reason I had not heard from the management about resolving this issue was due to the fact the paperwork had moved through Kia's system. She asked if I had a contract? I said yes, she said according to Kia I was now listed as the owner. But she assured me that It would be taken very seriously and it would not be forgotten or swept under the rug.

I called again to follow up. Representative #2 indicated that the complaint had been filed by #1 and contact had been made with the dealership and the regional management. While I was on the line she reached out again to the dealership. She for me to give it about three days and follow up to see how we could come to a resolution. Two weeks passed, and I called a third time, representative #3 informed me that we would need to work with the dealership to resolve the issue Kia could not assist on the sales side of the business due to anti-trust laws. I asked for transcripts of my original call to customer support and was told it was proprietary property and no it would not be provided. I have tried to go through what I thought were the proper channels to resolve this and it has only resulted in threats of arrest. I have the full email chain with the lenders representative and the sales representative with a detailed timeline.

This is one of those stories that if it hadn’t happened to us, and I wasn’t’ the type of person that documents everything, I wouldn’t have believed it. You just can’t make this stuff up!

TLStarkey
 
Aug 3, 2018
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#5
You are being threatened wiith theft and arrest? Contact an attorney immediately.
Yes, I am being threatened with arrest. I came here because I wasn't' sure what to do after I spoke to Kia and they wanted me to go back to the dealership. I'll try to find an attorney do you have any recomendations on what type of attorney?
 
Jul 27, 2016
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#7
Honestly, I'm really not sure what actually happened here from this description. Did you actually purchase a car from this dealership?
 
Aug 3, 2018
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#8
We left the dealership believing that we had purchased the car, yes. I left with a contract, my name on the paper plates etc... with the understanding that I would need to send the new lender the documents ( same docs provider earlier in the week). I agreed and on the following Monday, I called the lender for a phone interview so she could tell me exactly what was needed to complete the loan. It was during the communication with the lender that the discrepancy in the income listed on the application came up. I sent her proof that my house was paid for, proof of residency, W2's, pay stubs and references which was all that she asked for. It was when she took all the documents to underwriting, that she came back to me and asked for additional income verification because what I had submitted didn't equal what had been listed on the application. I told her that the income verification for my husband's wages was all there was. She then informed me that the application had listed $50,000 as income and if I couldn't come up with additional income verification then the loan would likely be denied. Which it ultimately was. I went back to both she and the salesman and asked for copies of the loan application in which the income was definitely inflated ( which I did not do) he said he didn't have access to it and she didn't respond further. That's when I started reaching out to the ownership/General Manager about the issue and our treatment during the process and asked for assistance in resolving the matter. When I spoke to the first Kia support representative and she heard the details, she said no one from the dealership has reached out to you because as far as Kia is concerned you are listed as the owner of the car, so they wouldn't. But what has happened they let a car go off of their lot without being paid for it and now they are scrambling as a result. While trying to threaten and scare you. I said, so they can't come and arrest me? While not providing legal advice, she said you have a contract right? I said yes. Then as far as Kia was concerned it was my car. The problem arose on the side of the dealership and they maintain that I didn't comply with providing the income docs. I couldn't provide what I didn't have or claim to have. When the deal went south I believed that the salesman had created this mess and it was his to clean up.
 
Aug 3, 2018
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#9
I reached out this afternoon to the lender's representative that worked with us. I asked if she could give me the date of the loan application, a name of the individual that submitted it and a timestamp. I got two answers out of the three. The application was submitted at 3:54 which would have been the time that we were sitting in the dealership waiting for the salesmen. I had no reason to believe that the income on that application wouldn't be any different than the previously reported and documented amounts. But that's where it changed. During that time period.
 

Neil Maley

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#10
You really need to get an attorney. You have an employee that you claim falsified your income (did you sign the paperwork though?) a car in your name with no approved loan and a threat of prosecution for stealing the car.

There is nothing else we can assist you with here.

Please contact an attorney, this is beyond anything we can advise you on.

I’m going to close this thread. If you would like to have us update this after you contact an attorney and get it straightened out contact us. I know I’d like that know how this turned out.

An attorney can tell you if you have any claim against the dealership and salesman for falsifying your income.

Justaguy also asked to add this and as you can see- you’ll need a lawyer. You don’t want the car repossessed.

I was going to comment, but the thread is closed. This is a very good article about these sorts of "maneuvers" (spot delivery, aka Yo-Yo financing) by dealerships. It's by a consumer lawyer who deals primarily with car dealerships. Also, an Edmunds article about spot delivery.

http://lehtoslaw.com/dealership-steals-back-car-just-sold/
https://www.edmunds.com/car-loan/dont-fall-prey-to-spot-delivery-scams-and-yo-yo-financing.html
 
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