Nissan Buyer Says He Caught Dealership Violating Lending Law

A netizen has sparked discussion after claiming he caught a Nissan dealership violating the Truth in Lending Act.

In a video with more than 149,000 views, TikTok user Mike (@alwaystouchingmoney_inc) is shown interacting with a United Nissan employee in Las Vegas, Nevada. The worker is telling him they won’t do business with him, while Mike accuses the worker of committing securities fraud.

It’s unclear exactly what’s going on here, although Mike attempts to expand on the description.

“They are violating the truth by mixing cash and credit payment for a consumer transaction! This is literally securities fraud! he exclaims. “If they ask for a deposit, it must be included in the financing costs! In reference to section 15 USC 1605.”

Is the TikToker right?

So, did Mike really catch this worker committing securities fraud or violating the Truth in Lending Act?

In short, no.

For context, “The Truth in Lending Act (TILA) protects you from inaccurate and unfair billing and credit card practices. This requires lenders to provide you with information about the cost of the loan so you can compare certain types of loans,” according to the Office of the Comptroller of the Currency.

TILA requires that finance charges – “the actual interest, fees, taxes and other costs paid over the life of an auto loan are called financing charges,” according to JD Power – include any costs the borrower must pay . , directly or indirectly, as a condition for obtaining the loan.

However, a down payment is generally not included in the finance charge. Rather, it is a separate element of the transaction that will reduce the amount financed rather than being considered part of the finance charge itself.

It is also inaccurate to say that mixing credit and cash is illegal or constitutes securities fraud. Auto loan transactions can involve both cash for a down payment and credit to finance the rest.

@alwaystouchingmoney_inc These guys are crooks and scammers in this dealership, they are violating the truth in lending by mixing cash and credit payment for a consumer transaction! This is literally securities fraud! If they ask for a deposit, this must be included in the financing costs! Referring to Section 1605 of USC 15 #fraud #truthinlending #act #consumer #transaction #violation #conartist #dealership #payment #funds #securties #withoutrecourse #car #bankfraud ♬ original audio – Mike

What does 15 USC 1605 actually say?

As for 15 USC 1605, which the TikToker calls out by name, his assertion regarding its contents appears to stem from a viral misunderstanding of the Truth in Lending Act.

For example, the idea that car down payments are illegal under the Truth in Lending Act was floated on Reddit two years ago, and videos on the topic have been circulating on TikTok throughout the last year .

However, this section defines finance charges and specifies what should be included in finance charges. Although it covers a wide range of costs, it generally does not require down payments to be included in finance charges, making its relevance in the down payment discussion questionable.

Mike, the TikToker who posted this video, made several other videos on the subject months ago, and has previously made videos in which he references several topics commonly discussed by sovereign citizens.

“Sovereign citizens are an anti-government group who believe that the United States is not legitimate or that the laws apply to it,” Dr. Christina Sarteschi, a professor at Chatham University, told WPXI in August 2023 .

In the comments section, users noted Mike’s mistakes.

“So if a bank approves you $10,000 on a $15,000 car. you have 2 options, pay the $5,000 to the dealer and finance the rest, or move your Chevys and walk home,” observed one commenter.

“The deposit is not fraud. Attaching interest to the deposit instead of excluding it would be fraud. I don’t think that’s the case in this video,” another shared.

“This dealership could and should file a complaint and file a lawsuit,” said a third.

The Daily Dot contacted United Nissan via the website’s contact form and Mike via email.

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