When leasing a vehicle, some fees are expected—taxes, registration fees, and so on. But during the lease buyout process, you might find yourself facing unexpected e-filing fees, sometimes at excessive rates. E-filing fees are typically for electronically submitting paperwork to state authorities, and while they can be legitimate, dealerships sometimes inflate these charges. Here, we explore why e-filing fees are controversial and how you can contest them under the Consumer Leasing Act (CLA).
What Are E-Filing Fees?
E-filing fees are charges for electronically filing documents related to your lease buyout. They usually cover the costs of submitting documents like title transfers to relevant authorities. While these fees can be legitimate, they are sometimes priced far beyond the actual cost of e-filing, leading many consumers to suspect they’re being overcharged.
Why Are E-Filing Fees Controversial?
The issue with e-filing fees lies in the lack of transparency and potential for inflated pricing. Electronic filings are typically low-cost processes, but some dealerships tack on excessive charges for the convenience of handling the paperwork. Consumers often feel these fees are unjustified, especially if they were not disclosed in the lease agreement.
How the Consumer Leasing Act Protects You
The Consumer Leasing Act mandates that all fees associated with the lease and lease buyout must be disclosed at the start of the lease. If e-filing fees were not mentioned, the dealership may be violating the CLA. This regulation protects consumers from hidden charges that can add up quickly.
How to Challenge E-Filing Fees
- Review Your Lease Agreement: Ensure the e-filing fees are mentioned in the lease. If the fees are not mentioned, you may have a case against the dealership.
- Request a Detailed Explanation: Ask the dealership to explain the fee and justify the amount. This information can be useful if you pursue further action.
- Consult an Attorney: If the dealership is uncooperative, legal counsel can help you challenge the fee and seek potential damages.
With the right knowledge, you can avoid overpaying for e-filing fees during a lease buyout and take action against unfair charges.
How Baron, Herskowitz, and Cohen Can Help
If you’re concerned about e-filing fees or feel they’re excessive, Baron, Herskowitz, and Cohen can provide the guidance you need. Our experienced consumer rights team knows how to identify illegal or hidden fees and protect clients from unfair practices. We’ll thoroughly review your lease agreement, communicate with the dealership on your behalf, and explore legal options to reduce or eliminate undue costs. Contact Baron, Herskowitz, and Cohen to see how we can help ensure your lease buyout remains fair and transparent.
