Thursday, January 29, 2004
Copyright © Las Vegas Review-Journal

FINANCING DISASTER: Couple, dealership settle dispute

Towbin Jeep Eagle representatives say pair's income statement was altered

Rubi and James Aniversario stand in front of a Jeep Cherokee they leased in 2002. They have reached a settlement with the dealership they got the car from after alleging a credit application they filed was manipulated by someone to make the couple look wealthier than they are. Photo by John Locher.

A Las Vegas couple who said they were stuck with thousands in debt because of a vehicle trade-in have entered into a confidential settlement with the dealership.

The settlement involving James and Rubi Aniversario followed an inquiry by the Review-Journal about the couple's trade-in of a Jeep Grand Cherokee at Towbin Jeep Eagle.

Towbin representatives acknowledge an income statement contained in the Aniversarios' sales file at the dealership appears to have been altered.

The document is thought to have been provided by the Aniversarios to the dealership when they sought financing for their new car, and the altered document shows that the Aniversarios made twice their income.

An attorney for Towbin, Dominic Gentile, said late last week someone in the dealership might have been responsible.

"We are sorry this event occurred," Gentile said.

Owner Daniel Towbin said the same.

"These unauthorized activities by a former employee are not tolerated and in no way reflect the business practices of Towbin Automotive," he said.

Gentile said the dealership is starting a compliance program to ensure the incident is not repeated.

"We don't do business that way; it's really that simple," Towbin said. "You can't do business that way."

The salesman who dealt with the Aniversarios no longer works at Towbin Jeep Eagle. He could not be located for comment.

The allegations made by the Aniversarios were the subject of a lawsuit filed in District Court late last year. The lawsuit, filed by Dan Wulz of Clark County Legal Services, made several claims, including intentional misrepresentation and concealment.

Wulz alleged the Aniversarios' credit application had been falsified, a claim Gentile said is untrue.

"When you falsify a credit application, it's taking money with falsified information," Wulz said. "It enables the customer to get a car that they couldn't otherwise afford."

In the lawsuit, Wulz detailed two other transactions involving different customers to show the couple's experience was not an isolated incident.

"This is absolutely not a pattern, and we certainly hope it is an isolated incident," Gentile said.

"We have not had another complaint of this nature," Towbin said.

The Aniversarios are from the Philippines and have work visas. They have been in the United States since 1998, and they are applying to be citizens.

They said they were more than pleased in their first encounter with the West Sahara Avenue dealership when they bought a Mitsubishi Mirage. They made other deals with Towbin, and in February 2001, the couple leased a 2001 Jeep Grand Cherokee for $496.93 per month for 48 months.

In September 2001, the Aniversarios traded in the Jeep for a later model Cherokee on a lease of $631 a month for 60 months. As part of the deal, the couple would owe nothing on the older vehicle.

During the deal, the lawsuit said, the salesman had the Aniversarios sign a blank credit application.

In June 2002, they received a letter from the dealership saying they had buyers for the Jeep Cherokee model the Aniversarios possessed. The Aniversarios said they went into the dealership days later at 9 a.m. for service on the vehicle, and they were asked again if they wanted to trade it in.

"I told them only if we could get a lower payment," Rubi Aniversario said.

She and her husband said the salesman represented they could trade in the vehicle and secure a lower payment. The Aniversarios said they spent the next 13 hours in the dealership as the deal was negotiated.

They said that the whole time they were under the understanding they were trading in their Cherokee, and any outstanding balance would be transferred to their new lease.

The couple said the salesman proposed a lease for a 2002 Jeep at $585.96, $46 less than their current payment. After the paperwork was signed, Rubi Aniversario said she asked for a plastic bag for retrieving her valuables from her old car.

"He said no, that we were taking home two cars," Rubi Aniversario said. "He said we can't trade it in."

"He told us we are lucky, that we don't have to pay for the second," she said.

The Aniversarios said they were stunned and had planned to trade in their old vehicle, not just lease a new one. They said they repeatedly voiced questions.

Rubi Aniversario said that she went back to the dealership days later to try and straighten out the mess. She said she was told the salesman they dealt with no longer worked there.

Rubi Aniversario said she repeatedly asked for help from other workers but was rebuffed.

"How do we have two cars?" Rubi Aniversario said. "Nobody wanted to help us."

The couple did not make the payment on the old vehicle, and it was repossessed in August. A letter soon came in the mail that said they owed $12,000 on the repossessed vehicle.

They contacted Wulz, who secured their credit applications. The Aniversarios said they were shocked when they saw their application showed James Aniversario made $6,400 a month. James Aniversario does interior design work, and he estimates his yearly income is about $45,000.

Towbin said the dealership does not alter credit applications. But in the sales file is an income statement that was fudged by someone during the transaction.

Towbin provided a copy of the income statement to the Review-Journal. The statement ending June 2002 showed James Aniversario made approximately $85,000 a year, nearly double his income.

On Wednesday, both Gentile and Wulz said a settlement has been reached in principle, the details of which are confidential.

A statement was issued by the dealership.

"This matter is settled to the mutual satisfaction of both parties," the statement said. "(The Towbins) quickly took an interest in this case and resolved any and all of the Aniversarios' concerns."