What is my right to the returnof adownpayment that I gave to an auto dealership ifI submitted fraudulent financial infornationand wasturned down for a loan?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What is my right to the returnof adownpayment that I gave to an auto dealership ifI submitted fraudulent financial infornationand wasturned down for a loan?
I went to a ma and pop to dealership to purchase a car and I gave them a $2000 down payment. However, I provided false pay check stubs to get the loan approved. The fiance company did not approve me due to the false check stubs so no money was exchanged between the dealership and the finance company. Now the dealership will not return my down payment saying that it didn’t have to because I submitted false documentation. Can the dealership do this?
Asked on August 13, 2011 Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
That is correct; the dealership does not need to return the deposit when the reason the deal falls through is your own wrongdoing, just as they would not have to return it if the reason the deal fell through was you changed your mind. Unless specified otherwise in the contract or agreement--i.e. unless this dealership specifically stated that you could get a refund or cancel the deal for *any* reason--deposits like this are only returned if the deal falls through do to something the dealership did. However, in this case, you breached the agreement by using false information, and since you breached the agreement, you cannot recover the deposit, unfortunately. Try negotiating with the dealership; maybe they will allow you to apply the deposit for a car which you could afford based on your income, but note that any agreement would be purely voluntary on their part.
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.