2023-07-08 00:31:16
Saturday, July 8, 2023, 00:31
comment
copy link
Telegram
In recent years, a new type of business related to the automobile has become popular, that of companies that offer quick loans to car owners in financial distress. These, for their part, can continue to use them on the condition of paying a rental fee.
However, according to the complaint by the Organization of Consumers and Users (OCU), some companies offer this type of service in a way, at least, “confusing”. In the March issue of its magazine ‘Master purchase’, the association speaks specifically of Gedescoche, “the best known of them”.
This company, belonging to the Gedesco Group, was born in 2010 “with an innovative service” -as it explains on its website- that offered individuals the possibility of getting money from the sale of their vehicle “and also offering the possibility of continuing to use it ».
The operation of this business is as follows: the company appraises the vehicle -in the case of Gedescoche, it must be less than 10 years old-, pays the agreed amount to the customer and the customer continues to use his car “for a comfortable rental fee”. . In addition, you are offered the possibility of repurchasing it whenever you want by paying the same amount borrowed, “without interest”.
A “repurchase agreement”
The OCU denounces that, in reality, “the contract signed with Gedescoche is not a loan, but a sale with a repurchase agreement.” So the company keeps the car “and what the user believes are loan installments are simply the monthly payments for the rental of the vehicle in order to continue using it.”
To get your car back, the consumer organization continues in the ‘Master Purchase’ article, “the person who has signed must also return the full amount they lent them, exercising their repurchase option.” “In short, they offer you money without giving up your car, and if you don’t pay, they leave you without a car and without money.”
In the opinion of the OCU, this practice “is a hoax” based on a “null” contract, since the user is not informed. That is why the organization asks “that this nullity be effectively declared and that the amounts improperly paid be returned.”
Comment Report a bug
#Business #scam #buying #secondhand #car