Can a consumer finance company make you sign for extra insurance?

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Can a consumer finance company make you sign for extra insurance?

I recently took out a small loan with a finance company. When I went to sign the papers, the office was closing in 10 minutes; aware that I was coming they had the paperwork ready. Never once did I say I wanted the extra insurances but the papers were prepared for it. I was told the computers were already shut down and even if they weren’t they couldn’t do anything about it, that I would just have to sign the papers now and come back later to cancel. Is that legal?

Asked on May 14, 2011 under General Practice, Pennsylvania

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Certainly does not sound it.  Sounds like what would be called in the consumer business a "bait and switch."  You know, getting you to come in for one refrigerator that is no longer available and giving you another.  I would strongly suggest that you take the paperwork that you signed to an attorney to review on your behalf.  If they added this one clause who knows what is hidden in all of that paperwork just lurking to wreak havoc on your financial life.  And if you have a right of rescission of the contract it is generally a short time period - like 3 days - so you do not want to linger about with this matter.  Get help.  Good luck.


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