Knoxville man seeks down payment returned after car loan falls through

KNOXVILLE (WATE) – A Knoxville man who put $2,000 down on a used car saw his loan fall through. However, the dealer only returned a third of the down payment and kept the rest of the money.

When Robert Langford received only $700 back, he said he asked to speak to the owner of the dealership, but said he never got a response. WATE 6 On Your Side did.

Langford bought a used Buick Enclave in early April. It was the second car he had purchased this year. In early March he had gone to Quality Motors in North Knoxville where he purchased his first car, a 2012 Ford Taurus four-door sedan. Langford is disabled, divorced and lives on disability, but holds down a part-time job. He’s also a high credit risk.

Langford paid $2,100 cash as a down payment, plus another $500 in fees. The finance charge was 23 percent a year. He said his salesman was optimistic about the loan.

“Bring us the information that they needed and it was a done deal,” said Langford.

The loan with Credit Acceptance fell through. So, Quality Motors called him and said to bring the car back for a refund. Langford expected his full $2,100, but only received $700. Quality Motors kept two-thirds of the down payment to cover extra charges.

“The salesman said, ‘We’re going to charge you $25 a day and 25 cents a mile,'” Langford said.

The car was bought at Quality Motors in North Knoxville.

At the time of the sale, Langford signed a lot of papers at Quality Motors. As WATE 6 On Your Side looked at the papers, there was no reference to daily charges and mileage if the loan failed. WATE 6 On Your Side Legal Analyst Greg Isaacs says controlled contracts, like car loans, require legal documents.

WATE 6 On Your Side Legal Analyst Greg Isaacs says controlled contracts, like car loans, require legal documents.

Customers must be informed of all agreement terms, Isaacs said, and there are not supposed to be surprises after the papers are signed.

“It would be remarkable to have a transaction where you would have a finance agreement without documents.So there should be a financing agreement, a bill of sale. So there should be a number of documents that set forth the parties number of obligations whether for the seller or the consumer,” Isaacs said.

Those terms and agreements Langford signed never included special fees. WATE 6 On Your Side went to Quality Motors with Langford to speak with either the salesman or the owner. Even though the office door was open, no one was inside.

Behind the office is a garage, no one was there either. The desk belonging to the man who sold the car to Langford was empty; he no longer works there.

There was no one in the second-floor office. Finally, a friend of the owner called Ali Khalil who buys cars for the dealership.

“My understanding is that you could have, we could have gotten you financed, but you didn’t give us exactly what we needed in order to get you financed,” said Khalil.

Khalil said Langford waited weeks to send information to the loan company. He said after two weeks, Quality Motors had the car repossessed. Langford said he paid to get it back and said he was trying to get the loan, but Kalil said Langford told the loan company something different.

“You told her not to send us the information. So we had no choice but to get the car back because you were not willing to give us it in order to get you financed,” said Khalil.

Langford was told to see the owner regarding the $1,400, who Lanford said he could never reach. Within 30 minutes after this conversation, the owner called.

Chris Yousif said he’s done nothing wrong, that Robert Langford lied, had “buyers remorse,” and presented false information to the loan company. Yousif said he did not tell Langford what would happen if the loan fell through. However, Yousif said he would get in touch with Langford, and he did.

“He was very willing to give me my money back,” said Langford.

Langford said Yousif apologized and returned the rest of his down payment.

Yousif says he did nothing wrong, runs an honest business and has had nothing like this happen to him before. Langford is grateful to have his money back.

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