MW in California asks: “My son signed for a loan with HSBC. He called to cancel the loan on Saturday. What should I do to protect my son? I do not want him to get a loan through this company. I have no “fine print” with the details on this loan. The motorcycle has already been delivered to my house. No money has been exchanged. Can I go to the dealer and pay cash and get this loan reversed? The dealer does not know we called to cancel the loan. According to him the title has already been mailed to the secretary of state. Helpl”
Editor’s note: There is a three day right to recind. I guarantee the dealer DOES know more than they are saying. Contact your state attorney general.
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Thanks for your comment but check the facts first. Contrary to general assumption, there is no federal law giving buyers the right to cancel their new car purchase within three days of sale. The often-cited Federal Trade Commission (FTC) “Cooling Off” law is only effective for door-to-door sales or sales made at other than the seller’s place of business. However, many states have enacted their own versions of the FTC law, affording broader protections than what the federal law does. Prior to purchase, prospective buyers should check with their state’s attorney general’s office to see if automobile purchases are covered under state law.
Followup, RE: Beneficial and Beneficial Mortgage –
“In addition to insurance packing the homeowners were lied to again. Cathleen Pitts said she and her husband tried to back out of the deal but were told they couldn’t because the papers had already been signed. Kevin Glendening, deputy state banking commissioner, said consumers have three days to back out of a deal. Glendening said the two insurance policies, totaling $9,395 in premiums, were single-premium policies through Beneficial and tacked on to the price of the mortgage.”