Kunert v. MISSION FINANCIAL SERVICES CORP.

Opinion

BOLAND, J.

SUMMARY

This case involves the legality of arrangements under which consumers purchase automobiles on credit through conditional sale contracts with automobile dealers. The dealers assign the contracts to finance companies, and the finance companies pay the dealers a portion of the finance charges (called a “dealer participation” or “dealer reserve”) due under the assigned contract.

The consumers in this case assert that payment of the dealer reserve by the finance companies to the dealers is (a) a “commission or other remuneration” prohibited by the Rees-Levering Motor Vehicle…