7. ADDITIONAL INFORMATION - LIABILILTY OF LENDER, WHERE LAWSUIT MAY BE FILED (VENUE), AND ATTORNEY FEES

We have touched on some of the more common issues that arise with "conditional sales contracts" and in concluding our discussion of Rees-Levering want to raise some additional but yet important points that can also arise.

THE LENDER IS LIABLE FOR ANY CLAIM AGAINST THE DEALER: If a buyer has a claim against the dealer arising from the sale the buyer can also sue the bank/ finance company that purchases the contract from the dealer. This can sometimes be used as leverage in resolving a dispute with the dealer. If a bank/finance company is sued because of the actions of the dealer they often file a cross-complaint(counter suit) against the dealer. So the dealer not only has a battle with the consumer but the finance company as well.

VENUE: Reese-Levering offers a number of choices as to which California county a lawsuit under Rees-Levering may be brought. A lawsuit may be filed in any one of four places:

1. The county where the "conditional sales contract" was signed
2. The county where buyer resided at the time the contract was signed
3. The county where the buyer resides at the time the lawsuit is filed
4. The county where the vehicle purchased is permanently garaged

ATTORNEY'S FEES: Rees-Levering allows the party that wins the lawsuit to have the other side pay their attorney fees. It does not matter who filed a lawsuit first. This allows many buyers to retain attorneys to sue the bigger better financed dealer.

ADDITIONAL DISCLOSURE: Beginning in July 1, 2006 dealers BEFORE, asking a buyer to sign a conditionals sales contract, must give the buyer an itemized breakdown AND total of any:

1. Service contract
2. Insurance product
3. Debt cancellation agreement
4. Theft deterrent device
5. Surface protection product
6. Vehicle contract cancellation option agreement

The dealer must then list what the monthly payment would be WITHOUT these 6 items and the monthly payment WITH the 6 items. The dealer must then obtain the buyers signature.