credit insurance from dealership...illegal?
so my cousin just bought a new car and i was reading the bill of sale. He paid $1899 for "health and accident insurance". When i asked him what this is, he said that they included so that he can get a lower interest rate (his credit isnt too good). He said that if he didnt take it, they would have to charge him 16.99% interest for the loan. My question is can they do that? They never mention it anytime during the credit check or sale. I was looking around online and came across Consumer Law Group CP and their site reads "When financing your loan through the dealership, pay attention to the details. Some dealers will include a credit insurance policy in the terms of the loan without telling you. Others will not approve your loan unless you agree to purchase the insurance. Both of these practices violate federal Truth in Lending laws and are considered fraud." Can he go back and have them remove it?