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Update from today actually:
Dealership has paid off the loan now, it has been confirmed at my friend's bank this afternoon.
The only thing is that the loan was obviously paid off weeks later than expected that the balance changed due to the interest on the loan. Meaning, my friend ended up getting less of a refund for the payments he continued to make on the loan while this was all happening. In addition, there was a $30 admin fee through the bank that was charged for paying off the loan...which makes no sense.
At this point I feel like there is no point of trying to hound the dealership now to pay back the additional interest that accumulated (roughly $50-60) as I'm sure they would delay payment or make excuses.
Just a nice complaint through OMVIC would suffice as I checked my friend's purchase agreement and it shows that the dealership did not abide by OMVIC rules for "all in pricing"
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