The Vachon Law Firm has announced the filing of a lawsuit against Infiniti of Mission Viejo. The lawsuit alleges that the popular Orange County, California seller of Infiniti brand automobiles has an illegal practice of misrepresenting the amount of negative equity included in automobile leases. “Negative equity” results when either (1) a consumer trades in automobile that he or she previously purchased that has an outstanding loan balance greater than the vehicle’s fair market value (i.e., the owner owes more than it is worth), or (2) a consumer trades in a leased automobile for which he or she will have to pay an early termination amount. In either case, negative equity means that the consumer’s trade-in vehicle causes an increase in the loan (or lease) amount for the new vehicle because the trade-in vehicle’s outstanding loan or lease balance must be added to the new automobile’s price. The lawsuit was filed on July 8, 2013 in the Orange County Superior Court, and is titled Boinus-Reehorst v. Infiniti of Mission Viejo, et al. (Case No. 30-2013-00660120).
Allegations Against Infiniti of Mission Viejo
The Complaint in the Boinus-Reehorst v. Infiniti of Mission Viejo, et al. lawsuit alleges that the Plaintiff, an Arcadia, California consumer, leased an automobile from Infiniti of Mission Viejo in May 2013, and in doing so traded in a previously leased automobile. The Complaint goes on to allege that Infiniti of Mission Viejo contacted the lender financing the prior lease, and learned that Plaintiff had over $5,000 in negative equity in that vehicle’s lease. That is, the payoff amount for the lease was greater than the vehicle’s fair market value.
The Complaint alleges that Infiniti of Mission Viejo prepared the lease contract for the new 2013 Infiniti G37, and in doing so failed to properly disclose the amount of negative equity in the trade-in vehicle. The Complaint further alleges that as a result of the dealership’s improper disclosures, the Plaintiff was fooled into thinking that the negative equity amount in her trade-in vehicle was much less than it actually was. Specifically, it alleges that Plaintiff would not have leased the 2013 Infiniti G37 if she had known the true negative equity amount.
The Complaint contains causes of action for violation of California’s Vehicle Leasing Act, violation of the Consumers Legal Remedies Act, and unfair competition. The Vachon Law Firm, who is representing the Plaintiff, asserts in the Complaint that the dealer’s alleged conduct entitles Plaintiff to rescind her lease contract and to be paid restitution for all amounts that she has already paid.
Please note: the above-described allegations in the complaint are merely a description of the allegations included in a publicly filed document. Infiniti of Mission Viejo has denied all wrongdoing and asserted that its conduct was legal.
Vachon Law Firm Looking For More Infiniti of Mission Viejo Customers
The Vachon Law Firm is currently looking for other Infiniti of Mission Viejo customers who traded in vehicles with negative equity. If you leased an automobile from Infiniti of Mission Viejo and traded in a previously leased automobile or one that had a loan greater than its fair market value, then please call the Vachon Law Firm at 855-4-LEMON-LAW (855-453-6665) today.
By calling, you might provide valuable information that could help other consumers.
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