I purchased a Honda CRV EX-L 2014 from Honda Cars of Katy on 08/16/2014 and had major Financing Fraud ever seen in my life. If I would have known earlier or careful, I would have bought happily from other dealership or even other brand car. I have already started few action to get my money back.
Following was the Fraud:
I agreed to purchase the car at $18,400.00 with trade-in my old Honda CRV at $11,000.00 out of the door as per between myself and Sales Person 'Justin M Espinoza'. This offer also included one year coverage of (Diamond Fusion, Nitro, Paint and Fabric Pro and Data Dots) which is under dispute. The dispute is the extension of these coverage from 1 year to 3-5 Yrs. In other words, If I would have paid cash $18,400.00 I would have taken the car with me that included all types of processing & tax charges along with the 1 year coverage of (Diamond Fusion, Nitro, Paint and Fabric Pro and Data Dots), but, according to paper it says I financed $25,268.25. Read carefully posted on all CRV ("OPTIONAL FEATURES INSTALLED")
What Was The Trap through Finance Manager (T.J. Ashraf ): (As I recall what happened that night, yes night time because they had opened till 11:00 pm to finish my transaction)
As usual he gave me 3-4 different plans/coverage which included warranties and other benefits as part of financing. That meant max:$380/moth to min: $300/month of payment. I remember telling them that 'No I dont' need any advance coverage. I will go with basic coverage only'. Then he mentioned that - 'OK I will give you the advance coverage in only $302/month'. I felt happy where I should have been alerted. Why? Now, see what happens. Somehow, because of that advance coverage he put all the extra features, coverage, warranties, etc. onto my paper and increase the total finance cost to $25,268.25 (including finance cost) which was $6868.00 more than the initial $18,400.00 which I could have paid cash.
Interesting thing is, if I know that I am moving away from Houston area then what is the use of these Optional Features. NOTHING. But they will not listen and it was bumped on my head.
Here are the items included:
- Optional Credit Life and Credit Disability Insurance $481.72
- Optional Insurance Coverage and Debt Cancellation Agreement $720
- Something related to Ethos Group Approx $1200
- Here are the Extended warranties/coverage which got extension from 1 Yr to 3-5 Yrs.
- Here are the charges for "OPTIONAL FEATURES INSTALLED" - be careful you all before you buy
| Diamond Fusion (Windshield Protection) | $795.00 | |
| Nitro (Tire Protection) | $670.00 | |
| Paint and Fabric Pro (Paint Protection) | $499.00 | |
| Data Dots (Theft deterrent protection) | $299.00 | $2,263.00 |
Now, someone might ask me, why did you stupidly signed those papers. Following are the reasons:
- I asked him to give me basic package (the lowest one), so I believed in him that he does his job and be honest. Lesson learnt, I will never sign any document like these.
- It was late nigh 10:30 pm, with my wife & kid, so we were in hurry.
- I had the assumption that any of these signed contract could be null an void, if I chose no to opt, even after I have signed. I assumed that these are intangible selling instruments similar to insurance. I still think so and that is the basis on which I am still trying to get my money back.
- Let's say, even if that was a mistake, which we thought initially (next day) this could be easily reverted back. But, once we talked to Finance Person (T.J.Ashraf) we realized that it was intentionally done and we were intentionally cheated.
To be honest with you when I look back what happened I sound little stupid but that came out of my trust on the system and them, thinking that they will take good care of their customer. But, as you will see, they dont' care what the customer review is and what customers think about them.
Contact me if you are buying cars from here. Or if you have any fraud here. We'll discuss and find out a way.
I will post my experience in chronological order to help anyone who has similar problem. As of today's writing I don't know, if my problem will be resolved or not but I will try my best because I see that I have nothing to loose.
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Dated: 08/17/2014 Sunday
I called the Sales person on Sunday morning to discuss the discrepancies in the Finance. He still agreed that I could have taken my car in cash $18,400.00. He did mentioned that those items should be corrected after talking to finance department. He also mentioned that there is very minimal he could do because there is an iron curtain b/w Sales and Finance department. I had little relief after talking to him.
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Dated: 08/18/2014 Monday
We reached Honda Cars of Katy right on time at 9:00 am when they open and we luckily able to meet the Finance Person ' T.J.Ashraf'. We went in his room had a chat. In the first go, he gave us a form to cancel the first 3 items mentioned in first post and denied cancelling the extended warranties that totaled $2,263.0. We talked to Sales person, he still agreed with us and we again had a second round chat with Finance person. At this time I came to know that I had these coverage for 1 year and what he sold was for 3-5 years. he mentioned that these has already been applied on the vehicle so it can't be reverted back. That really sound stupid.
Same day I called and left a message to the Director of Finance for Honda Cars of Katy. No response as of yet.
On second try 'T.J.Asharaf' picked up the call. This time it seemed like it was tug of war. He mentioned you do whatever you want to do, I will not cancel those policy.
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Dated: 08/19/2014 Monday
First thing in the morning I called
Honda Finance - 800-448-9307 . She definitely agreed and told me that if you could get a form signed and sent to her she could deduct that amount $2,263.0 from my loan principal. She agreed that what has been done is not correct. But, the only way to do that is to go to the dealer and get the form signed. And that is the problem Mr T.J.Ashraf will not agree to that. She gave me the contact number of Honda Customer Support -
Honda Customers - 800-999-1009
Afternoon.
I called Honda Customer Care - 800-999-1009 As usual he gathered all the details for 15-20 min and went back for a min or so and came up with a solution. 'No we can't do anything. Dealers are independent business owners. They buy cars from Honda and sell according to their terms and condition. Honda can't interfere with dealer's business'. He did mention that a case has been created which might be sent to general manager of that area. Also, he recommended me to reach out to an attorney, better business bureau, consumer commissioner, etc.
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Dated: 08/19/2014
Afternoon.
I called
Consumer Credit Commissioner - 800-538-1579 I found this number in our sales contract document which I was reviewing again and again. The lady on the call was very helpful and clearly agreed to my concerns. She mentioned that I post of email a complaint letter to CCC along with all supporting documents. She mentioned that a letter will be sent to other party to hear their side of the story. Each communication will be CC'd to me and the other party.
Here are more details of Consumer Credit Commissioner:
Address: 2601 N. Lamar Blvd., Austin, Texas 78705-4207
Here is the excerpt of the letter which I wrote to CCC. The only thing I'm requesting is cancel my extended coverage of the items mentioned below which are optional in nature as per their documentation and advertisement.
Dear Sir/Madam,
I purchased a new Honda CRV 2014 on 08/16/2014 Saturday Evening.
I agreed to purchase the car at $18,400.00 with trade-in my old Honda CRV at $11,000.00 out of the door as per between myself and Sales Person 'Justin M Espinoza'. This offer also includes one year coverage of (Diamond Fusion, Nitro, Paint and Fabric Pro and Data Dots) which is under dispute. The dispute is the extension of these coverage from 1 year to 3-5 Yrs. In other words, If I would have paid cash $18,400.00 I would have taken the car with me that included all types of processing & tax charges along with the 1 year coverage of (Diamond Fusion, Nitro, Paint and Fabric Pro and Data Dots) .
I did financing through them, Honda Finance. I started signing the document with their Finance Person 'T.J.Ashraf' around 22:30 pm night on 08/16/2014 and it was getting late for us. I was with my wife and 3 yr old son. I trusted, heard many terms and condition along with other explanation and singed the document. I assumed that they will take good care of me and things would be fine because of my earlier car purchase experience.
When I started reviewing the documents same night, these things happened
1. it showed that we were financing $25,268.25. This was $6868.00 added cost for financing + various coverage
We went to Honda Cars of Katy and requested to explain the amount being financed and clarification for $6868.00
On request, they agreed to cancel one bulk coverage but other extended warranty coverage was not removed which is totaling to $2,263.00.
What I am requesting is to cancel my extended warranty/coverage of $2,263.00 which are given as below:
| Diamond Fusion (Windshield Protection) | $795.00 | |
| Nitro (Tire Protection) | $670.00 | |
| Paint and Fabric Pro (Paint Protection) | $499.00 | |
| Data Dots (Theft deterrent protection) | $299.00 | $2,263.00 |
I have been doing consulting and moving around all over USA because of my job. I moved to Fulshear (Houston) just 7 months back. Now, If I move out of Fulshear (Houston) area again within 3 years period then I can not avail these coverage and lose my money. Also, seems like these charges are made mandatory but not optional. Why? Why enforce these coverage on me? Why these clear information was not provided earlier, so that I could have paid cash or financed from somewhere else. How come Finance department can force me to take those coverage, when Sales team didn't inform. Even if they say that they informed, then, I am not willing to take these coverage. 'T.J.Ashraf', the finance guy, is not willing to do the numbers again and says that you will get final numbers from the Bank. Why? Why does he turns cold just when I have signed and bought the Car? On asking further documentation, he clearly denied that you will get those from bank. I don't even know that whether my other coverage for which we signed cancel documentation was taken care or not because he didn't not provide any proof of that. Now, I have to wait 2-3 week to get some letter from their finance department. he is not at all transparent in providing more information on this because he knows that he is in fault.
I would highly appreciate you help on this. I have been trying to reach out to Honda Cars of Katy but of no help. The finance person, T.J.Asharaf has already mentioned that you do whatever you want to do but he will not return those charges.
Here is my contact information:
XXXX XXXXX
99999 XXXXX XXX XX
FULSHEAR TX 77441
Honda Cars of Katy
21001 Katy Freeway
Katy, TX 77450
800-NEXT-HONDA
I have attached important documents related to this issue. I do have other documents, if you need.
Please let me know, if you need more information.
Thanks and Regards
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Dated: 09/4/2014
Heights of stupidity and Stupidity and Stupidity from one of the member of Honda Cars of Katy, probably 'T.J.Ashraf'. I didn't recognize the name. But the surprising thing is that the content of the mail is almost similar to what I reported to BBB.
I got a mail in my office address with same/similar context which I posted on BBB. Briefly, it reads that they bought some Software Package from me and there was lots of discrepancies in the sales contract papers and they just need an apology letter from me. Ah, what should I think about those dumb head.
I will post that letter here, once I make a digital copy of that.
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Dated: 09/8/2014
Another discovery I made that I was signed for Pegasus Pay withought me informing that there would be extra charge for that. Who would pay this extra charge in this world where all financial services provides services for automatic payment.
I called
Pegasus Payment: 888-473-4729 and cancelled my auto payment. This was simple and straight-forward as it should have been.
Chase amount $384.50 will be credited to our account. There was $192.00 initial registration but it would have charged after two months. That means first 2 months is for free. Also, they would have deducted $2.00 for each payment.
I have already setup automatic payment through Honda Financial website and our payment would be $382.50.
