Tyson v. Sterling Rental, Inc.

Plaintiff purchased a 2006 Chevrolet Cobalt from Car Source for $8,525.00. Plaintiff paid $1,248, using a grant from the state of Michigan. A salesman entered information from her most recent pay stubs and a recent bank statement into a computer program that incorrectly calculated that Plaintiff’s monthly income as $1,817.38. Plaintiff’s actual income was about $900 per month. It is not clear how the error occurred. Based on the incorrect estimate and her deposit, the APR on Plaintiff’s loan was set at 24.49%. Plaintiff signed an agreement. Days later she was notified that the terms had to be modified and returned to Car Source. Plaintiff claims that Car Source employees began “yelling and swearing” at her; removed her belongings from the Cobalt and “dumped them” at her feet; and stated that if she wanted her car back, she would have to make an additional payment of $1,500. Plaintiff refused to sign a new agreement and was never provided with written notice explaining why her credit arrangement had been or needed to be changed. The Sixth Circuit affirmed summary judgment that Car Source violated the Equal Credit Opportunity Act, 15 U.S.C. 1691, by changing the terms without providing a written notice with specific reasons. The court reversed the district court’s determination that injunctive relief was not available to Plaintiff under the ECOA and reversed summary judgment in favor of Defendants on Plaintiff’s statutory conversion claims. View "Tyson v. Sterling Rental, Inc." on Justia Law