Page 1 of 2 12 LastLast
Results 1 to 10 of 17

Thread: Looking for advice

  1. #1

    Join Date
    Sep 2011
    Posts
    45

    Looking for advice

    My son as found a Bonanza that he really likes and is affordable to him. Struck a deal with the owner, got insurance and financing. From what I understand he went through AOPA for the financing, and they directed to to a company (I don't know which one). He was approved and sent a $5,000 non-refundable deposit. This gave the seller a piece of mind and took the plane down from advertising. He then sent the loan company another $5,000 as down payment. Now, three weeks later the loan company tells him they aren't going to release any money because the engine is 400 hours from overhaul, and it's last overhaul was in the '80's. Aircraft is due for an annual in November.
    Can anyone give advice on what his next step should be? Since it's the loan company is "backing out of the deal" should he get the $5,000 non-refundable deposit back? Find a new loan company, and start over? Hire a lawyer to force the loan company to release the funds?
    Thanks for any guide line.

  2. #2
    In the slang "piece of mind" is a world of hurt away from the more humble "peace of mind."

  3. #3

    Join Date
    Jul 2011
    Posts
    2,575
    Tell him to file his claim in small claims court, where the loan co is located/ Will he wiin? Not too sure, but not much risk to trying it. No lawyer needed, in fact none is allowed. Hearing is before a judge, no jury. Bring any WRITTEN EVIDENCE, hearsay is not proof. the loan co or seller may have some leverage with 'nonrefunable " clause. but maybe it will be disallowed as unfair. The cost to file is usually about $75 and nothing else is at risk.
    The loan co is not going to take him seriously until he actualally fiiles. Just complaining over the phone will likely be ignored, make sure you have written a certified letter to them first.
    Short story, the shop replaced my vac pump with the wrong part, similar number but not right., and failed. For 6 months I was ignored, and out about $2200 parts and labor. Not even any answer to my letters. SUDDENLY LIKE A MIRALCLE , AT 11 PM THE NIGHT BEFORE court I get a phone call from the co President from Chicago. He offered reimbusrement only for the parts, sounded like an old gangster movie.
    I went to court. had proof, a letter from Beech dealer shop with correct part numbers. and I was awarded my full cost.
    If you don't file you dont even exist for the defendant, like a guy in a bar griping bout the weather.
    I have been to small claims court 6 or 7 times, I won 6 and tied one. One caveat. even if you win, the defendant may not have assets you can recover from. One guy had 23 previous claims against him.
    I might also ask AOPA legal dept if you have bought that perk as part of your membershiop. it has worked for me., worth every $. Good luck
    Last edited by Bill Greenwood; 10-05-2020 at 05:17 PM.

  4. #4

    Join Date
    Sep 2011
    Posts
    45
    Thanks for the info Bill. I will pass this on to him.

  5. #5
    DaleB's Avatar
    Join Date
    Sep 2015
    Location
    KMLE
    Posts
    654
    So far he's $10K deep, right? That may well be above the limit for small claims.

    If it were my money, I'd send them a demand letter for the $10K. Hire an attorney to write it if you want, but make it clear that you're not going to just quietly go away and let them keep the $10K for doing nothing. I would also send a CC to AOPA to let them know what's going on, and ask them for help in getting the lender to live up to their promise or return the money.
    Measure twice, cut once...
    scratch head, shrug, shim to fit.

    Flying an RV-12. I am building a Fisher Celebrity, slowly.

  6. #6

    Join Date
    Jul 2011
    Posts
    2,575
    Dale , one advantage of small claims court is that you get a definite court date, and are not dependent on goodwill of the loan company. Until you actually file, the defendant can and most likely will ignore him, just as in my case. If they wanted to do the right thing they would have already returned his deposit or at least made some kind of offer. Of course send a "demand letter" , but what then when they dont respond? Our max limit is $7500 , but that would be 75% if he wins. I won once when the defendant didn"t show up.
    He might hire an attorney to take a brief look, a half hour or so at his claim and advise of pros and cons. $10k may be too low for a lawyer to do on a contingency basis unless he has that AOPA option.
    The loan co probably doesnt want to have to have an officer take time to go to that court, Once he files, I think chances are good they will make an offer to settle, even if that offer comes only at 11pm the night before court as mine did. If they have a weak case, they may not even attend. I think this probably hinges on that claim of "nonrefundable" by the company. There is probably precedent and maybe case law on that. and I'd guess it in not without recourse, but I am not a lawyer nor familirar with his state.
    one thing is pretty obvious, do nothing and the loan co keeps the money.
    Last edited by Bill Greenwood; 10-06-2020 at 11:10 AM.

  7. #7
    DaleB's Avatar
    Join Date
    Sep 2015
    Location
    KMLE
    Posts
    654
    I won a case in small claims court once. I was awarded every penny I asked for. Now try collecting, if the losing party doesn't want to pay up. Good luck with that, especially if the other party is in another state. Anyway, just my advice. Do what you want, it's not my fight.
    Measure twice, cut once...
    scratch head, shrug, shim to fit.

    Flying an RV-12. I am building a Fisher Celebrity, slowly.

  8. #8

    Join Date
    Aug 2015
    Posts
    65
    Mike if I understand correctly your son will get his $5000 downpayment back from the loan company but is worried about getting the $5000 deposit back from the seller.

    Was the non-refundable deposit sent with the understanding that financing was not yet in place and the deal would depend on it? If that is the case then I would echo the small claims route. If on the other hand the deposit was sent to secure the aircraft with no subjects then I would suggest he explain the situation to the seller and plead for a return of the deposit. Might get lucky.
    Last edited by ahramin; 10-07-2020 at 05:53 PM.

  9. #9

    Join Date
    May 2017
    Location
    Northern Alabama
    Posts
    17
    No reputable company would accept a deposit, decide to terminate based upon an arbitrary circumstance such as you describe, then refuse to refund the deposit. What does the contract (terms and conditions) your son signed with the loan company state regarding refunds, deposits, or termination at will by the lender?
    Last edited by Stolch; 10-08-2020 at 06:16 PM.
    LownSlow

  10. #10
    Tralika's Avatar
    Join Date
    Aug 2013
    Posts
    78
    From a sellers point of view, "non-refundable deposit" is pretty clear. It's not the sellers fault the buyer was not able to get financing. $5000 is a pretty big deposit. Normally earnest money on a home purchase is only one or two thousand. If the seller is a nice guy he might refund some portion of that but I don't think he is obliged to do so. As for the $5000 sent to the loan company, it seems like the loan company should refund that since they are the one that cancelled the deal. If your state has a Consumer Protection agency, usually associated the the State Attorney General's office, you might file a complaint with them. Also check to see if loan companies are regulated by the State and file a complaint with that agency. It might be worth a few hundred bucks to get some advice from an attorney to find out exactly where you stand but small claims may be the only option.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •