If my carloan was rejected after I already received the car, can they take it back?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If my carloan was rejected after I already received the car, can they take it back?
I was approved for a car loan 9/27/10, signed the contract, and picked up my new car. However, on 10/18//10 the same bank is now requesting that I show $300 per month of additional income. Can they take the car even after I signed the contract stating that I was approved?
Asked on October 18, 2010 under General Practice, Alabama
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
Car dealerships when working with motor vehicle loan lenders, have two methods whereby a consumer can drive away with the vehicle the very same day. Either the consumer obtains financing immediately or comes in with a check ready to purchase or the consumer signs a document allowing the consumer to take possession of the motor vehicle with the understanding that the consumer must immediately return said vehicle if financing is not able to be obtained. In your situation, you were apparently approved for a loan (make sure you have your retail installment contract to prove it) and got the vehicle but now the lender has thought it may have made a bad deal. In essence, it is trying to subject you to additional proof of income when you have already entered into this agreement. There are quite a number of contractual implications (like potential breach of contract on the lender's part or even anticipatory repudiation) and quite a few outside of contract law (like detrimental reliance -- you relied to your detriment on this deal). You should immediately contact the entity who regulates your retail seller (banking department or attorney general) and file a complaint. The lender cannot now ask you to bring additional monies to the table.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.