Can a bank reject a car loan that they already accepted a week ago?

Can a bank reject a car loan that they already accepted a week ago?

My brother bought a car in his name. The bank accepted his application and provided terms, payment, etc. He signed the paperwork and we took the car last week after giving them mine. The car is insured through his insurance company under him with his other vehicle and I am an insured driver. The bank called him earlier today to verify his information such as address, etc. Later they called the dealership and stated they were going to reject the loan due to me driving the car. Can they legally do this?

Asked on March 5, 2012 under General Practice, Kansas

Answers:

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