Zero percent financing: class action allows

Funding has zero percent interest for the purchase of an automobile does it really exist? The Quebec Superior Court has authorized a class action on this issue that affects tens of thousands of consumers.

In December 2001, Marie Ange Bourdages buy a 2002 Chrysler Neon at a price of $ 19,765 plus taxes and fees. It relied funding has zero percent interest offered by Chrysler.

Six months later, Ms. Bourdages was surprised to see in a newspaper advertisement announcing the same vehicle has a less high price "substantially". She phoned the dealer for clarification. It shows him that customers who had paid cash right to a discount of $ 3000.

Given this supplement of $ 3000, Ms. Bourdages and his lawyers, Fredy Adams and Gilles Gareau, calculate that the real interest rate is not zero percent, but rather of 13.8 percent per year for period of 59 months provided for in the financing agreement.

A first attempt at collective action on this issue was aground in September 2009 after seven years of procedures. The request of Ms. Bourdages was filed in November 2006.

In a decision issued last week, Yves Poirier judge authorized the action against Chrysler and two others for Ford and Mitsubishi.