What to do about a rescinded car loan?
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What to do about a rescinded car loan?
I purchased a vehicle through on Friday. I signed all the paperwork, paid 1600 down payment. I was told I had financing through a bank. Today 4 days later I receive a call that the bank is taking back the offer and I need to return the car ASAP. If I do not they will repo the car and I will lose my down payment. Can they do this? They stated the reason the loan is not going through is that I am employed part time. I make $20.25/hr at 30 hours per week. How can they do this?
Asked on February 11, 2014 under Business Law, Pennsylvania
Answers:
Brook Miscoski / Hurr Law Office PC
Answered 10 years ago | Contributor
Just because you drive away with the car doesn't mean that the loan is yet official. Probably the bank wasn't willing to make the loan, which is why you now have this issue.
From the bank's perspective, the fact that you are part time is significant because it presents the possibility that you will have further reduced hours. The bank doesn't know you, and can't tell whether you're the guy who always gets 30 hours a week at that rate.
Whoever told you that you had financing when you drove off with the car was lying to you. It takes longer than that for the bank to finance the loan. Maybe you would have rights because of that...in Texas our DTPA statute is helpful when an auto dealer lies about a customer's legal rights, but it's hard to say how this has cost you any money, so your recovery might not be very good in Texas.
Alternatively...did you represent that you were employed full time? That might be another reason why the loan would be rejected, if you honestly enough represented that $30,000 a year is like being employed full time, but technically it's not really a full time job, so technically the loan application would be falsified.
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