i have had my new car for 23 days. i was accepted for the car loan through bank one the day of purchase. i received a call today from the bank, after i made my first payment and got insurance, and was told that they cant continue to process my loan, and i have to give the car back. is this legal??
2006-09-28 14:08:32 · 9 answers · asked by flamer1979x 1 in Cars & Transportation ➔ Buying & Selling
You've been a victim of a scam known in the business as a "spot delivery." The dealer accepts your loan application and sends you on your way, hoping to "shop" the loan from various lenders. If your credit is solid, it's usually not a big deal. However if your credit is borderline the dealer may not be able to sell the note to a bank or finance company.
The practice is illegal in some states (AZ for one) and there are some protections in other states. One thing you often CAN do is force the dealer to carry the paper at the agreed upon terms when you took delivery. Dealers hate to do that and you may need a lawyer to help force the dealer's hand on that. I'd strongly suggest that you consult with one. And check with your state's Consumer Affairs Division, usually part of the State Attorney General's office.
If a bank actually approved you for a loan, they can't back out. Again, consult with an attorney or check with your state's Consumer Affairs Division.
2006-09-28 16:42:47 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 1⤋
there is the right of rescission the broker places on the personal loan contract. it truly is basically a fashion that the broker is authorized to again out of the deal in the experience that they couldn't get you financed. in the experience that they try this they could require that you come the motor vehicle. yet this can be somewhat perplexing. The monetary company commonly received't call you and ask for the motor vehicle again it often is the broker. also, your first charge isn't commonly due till between 30-40 5 days from the date you purchase the motor vehicle. So i don't think of you've paid the monetary company yet if it has only been 23 days. you would have made a down charge in spite of the indisputable fact that it somewhat is to the broker. yet no matter if it changed into the monetary company, they carry a secure practices pastime contained in the motor vehicle. As such they could take again the safe practices at any time.
2016-11-25 01:34:48 · answer #2 · answered by bastien 3 · 0⤊ 0⤋
strange. I mean my dealer loaned me my jeep for a week last year, but he sure wouldnt have loanded it to me for 23 days. You buy it from an off the wall place or a big dealership? Do you have a contract that was signed etc? Did the dealer help you with that or? too many questions for an answer
2006-09-28 14:17:53 · answer #3 · answered by Anonymous · 0⤊ 0⤋
what was the reasoning?
They must have given you an answer. If you lied or didnt share all information to them, yes they can cancel the loan.
The bank holds the right to cancel the loan at any time.
But with reason.....
2006-09-28 14:10:39 · answer #4 · answered by Anonymous · 1⤊ 0⤋
I guess you better start looking for another lender, 'cause the dealer doesn't want the car back. It's now USED.
Maybe you can go back to the dealer and ask for help in this matter. Be prepared to pay more down and maybe higher interest rate.
2006-09-28 14:18:27 · answer #5 · answered by Trump 2020 7 · 0⤊ 0⤋
Doesn't sound legal to me. Read you loan contract to see what it says about canceling the loan.
2006-09-28 14:11:00 · answer #6 · answered by Justsyd 7 · 0⤊ 0⤋
Unless you lied on the application, then you should tell them to get ready to go to court. They can't do that without a good reason!
2006-09-28 14:49:07 · answer #7 · answered by lindalbnj 2 · 0⤊ 0⤋
They may have found a difference between your loan app and what they actually found. I've been in that situaton before, it sucks. Sorry. :O(
2006-09-28 14:16:15 · answer #8 · answered by sobay310 3 · 2⤊ 0⤋
If you lied on the app., YES.
2006-09-28 14:24:01 · answer #9 · answered by Anonymous · 0⤊ 0⤋