I purchaed the car at the Tempe Arizona Mitsubishi Auto Dealership. However, the Mitsubishi finance company (Mitsubishi Motors Credit of America) is in Cypress, California.
Below is a copy of the letter I sent to Mitsubishi Motors Credit of America on January 6. The letter contains all the details.
January 6
Account Number:
Certified mail
Accounting Department
Mitsubishi Motors Credit of America, Inc.
P.O. Box 6014
Cypress, CA 90630
To Whom It May Concern:
I am in urgent need of your assistance in lowering my monthly payment for my 2003 Mitsubishi Lancer. I am unable to make my January monthly payment of $505.99 so I mailed $250 today to:
Mitsubishi Motors Credit of America
P.O. Box 0555
Carol Stream, IL 60132-0555
I purchased this vehicle in February at the Mitsubishi Auto Dealership in Tempe, Arizona. According to my financial agreement:
-The total cost of the vehicle was around $18,000.
-I wasn't required to make any payments until January.
-When my payments were due to commence, the monthly payment was set up to be $505.99 (10.9% interest)
At the time I purchased this vehicle, the Mitsubishi financial officer at the Tempe, Arizona Mitsubishi dealership (I wish I knew his name but I don t) told me very clearly that when it was time to begin making payments, I could go to my credit union and refinance at around 5% (my credit is excellent) which would make my payments between $250 and $300 per month.
Although, anyone would think that a person of my age (I was almost 60 at the time I purchased the vehicle) would have known that his claim was not true, I trusted his claim because after all, Mitsubishi is a reputable company. I didn't learn of the deception until I tried to get the car refinanced in December through my credit union. At that time, my credit union, informed me that the Kelly Blue Book value on my car was around $12,000 and since I owed $18,000, they would not refinance.
I was and still am shocked that a reputable company such as Mitsubishi would allow an employee to make untrue claims. Is it Mitsubishi s common practice to arrange such dishonest financing or am I missing something here? TV runs many advertisements showing new cars (even very expensive cars such as a 2005 Lexus) for sale offering payment plans with monthly payments lower than the amount I am paying for my little Mitsubishi Lancer.
Since I didn't want to ruin my excellent credit rating, I felt, at that time, that I had no option other than to go ahead and make the payments. I have now made 12 payments of $505.99, which equals $6071.88 for a vehicle whose value in December was around $12,000 and whose value according to a Kelly Blue Book quote (January) on-line is below $10,000.
At this time, I am at the end of my ability to continue making this huge payment. I was diagnosed with breast cancer (copies of diagnosis enclosed) in early 2004. I continued to work until May when I had surgery to remove the cancerous tumors. At that time, I left my job and went on medical disability, which caused my income to plummet and the cost of my medical insurance to increase significantly. I knew that I would not be able to continue paying my mortgage payments, insurance payments, and my car payments, so I sold my house and moved in with my son and his family. Up to this time, I've been able to make my car payments by using my savings which I did thinking that I would be able to return to work after chemo and radiation and thus increase my income again. However, due to side effects (pulmonary fibrosis as a result of toxicity to the chemotherapy drug Taxol), it looks like I won t be able to return to work.
I love my little Mitsubishi and would love to keep it. However, I would trade down if this would resolve the problem. Of course, I can t do that because I owe so much more than the car is worth. I see only a few options that could possibly resolve this problem - I could:
-file bankruptcy,
-file a complaint with the Arizona Attorney General s Office-Fraud Division,
-contact one of the TV stations such as 3 on your Side, or - renegotiate a new financial agreement with Mitsubishi.
My preference is the latter.
Since I've already paid over $6,000, the car was worth around $12,000 at the time I began making payments (Jan. 2004), and the car is now worth under $10,000, it seems fair to me to arrange a new agreement. I can pay $250 per month for two more years which would total $12000.
I am asking for your compassion and mercy in my dire situation.
Sincerely,
Linda
Although I have not obtained an attorney as of this date (Feb. 12) I'll see if I can get an attorney for seniors. I did file a complaint with the Arizona Attorney General's Office today (Feb. 12) FYI, in both January and February I made a payment of $250 instead of $505.99.
I received a response to my letter dated Jan. 6, from Paulene Drake, National Account Service Center; Mitsubishi Motors Credit of America; P.O. Box 6014; Cypress, CA 90630 dated January 25. She does not address the questions I raised in my letter about fraud. Her letter is quoted below:
"RE: MMCA Account Number
Dear Ms. ;
We have received your recent correspondence and are very sorry to hear of your current health situation.
We regret to inform you that we are unable to make a change in the contractual agreement serviced by Mitsubishi Motors Credit of America, Inc. (MMCA)
Although we sympathize and recognize that you are experiencing financial and health hardships, as you stated in your letter, the contractual agreement remains in effect until the contract is satisfied.
Once the contract is signed, no changes can me made to alter the original agreement. The only way to lower your monthly payments would be to refinance the vehicle through another financial institution, as MMCA does not offer refinancing services.
Should you require additional assistance, please contact our National Account Service Center at (888) MITSU (888-648-7820). Our hours are Monday - Saturday, 5 A.M. - 8 P.M. (Pacific Standard Time).
Sincerely,
(signature that looks like Paulene Drake)
National Account Service Center
Mitsubishi Motors Credit of America."
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