What to do if a broker fraudulently inflated my downpayment on a retail installment contract?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What to do if a broker fraudulently inflated my downpayment on a retail installment contract?
I purchased a boat through a broker. The retail installment contract was assigned to a credit union. I noticed much later that the broker inflated my downpayment; they “cooked” the numbers so the credit union believes they have more equity ($7K) in the boat than it really exists. My financed amount was still what it should be, which is why I never took much notice of the contract. If I report this fraud information to the credit union, will I then be in some sort of trouble as well? And would I have to automatically make payments to the broker instead if the bank forces them to buy it back?
Asked on September 8, 2011 under Business Law, Texas
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Did you sign any paperwork that shows the inflated numbers by your mortgage broker? If you did, is there a reason why the loan broker inflated the down payment and other numbers concerning the transaction? Also, is there a reason why you did not notice the inflated numbers until after the sale?
I suggest that you first contact your loan broker and ask specific questions for the seemingly inflated information. Perhaps there is a good explanantion for it. If the explanation is not plausible, perhaps you need to sit down with the loan broker and his supervisor to discuss the situation further.
Depending upon the outcome of this meeting, you will be in a position to contact the credit union now holding your loan about the situation if you deem it necessary.
Good luck.
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.