We were given a personal loan. We signed everything. We were written a check and cashed it. Then, we find a letter in the mail saying that we were turned down. My guess is, that this is a mistake and to just ignore it, but has it ever happened where someone is given a check, the check clears and then the bank pulls back their approval? Can they ask for the money right back? What if the money was already spent?
2007-10-09 13:07:37 · 13 answers · asked by adrianne M 4 in Business & Finance ➔ Credit
Call the financial institution before you do anything else. If they did make the mistake, you will have to pay back the loan. Now.
In the end they don't care if you've already spent it. Someone made a mistake and unfortunately you'll have to pay for it.
2007-10-09 13:10:29 · answer #1 · answered by FaZizzle 7 · 0⤊ 3⤋
If the check has cleared the bank without a stop payment, then i would ignore the letter, the will send another and request that you pay the entire amount back immediately.
Just contact them and tell them that you were under the influence that because you issed a check that the loan was approved. Tell them you have already used the monies and will make the scheduled payments, Thank you.
I had this happen to me about 10 years ago, they demanded for 3 days straight after I had cashed the check, after I point out that the laws states that by issuing the check is a approved loan and is now subject to the terms of the contract.
That shut them up, i paid it off and 1 week after I had paid in full they caled me and wanted to know if I would like to borrow more money.
Don't sweat it. They can't do anything about it but request the payments or file a defaulted loan and try to illegally collect it.
IF that happens call a lawyer, they love that kind of stuff.
Best regards, and congratulations on the loan.
2007-10-09 13:15:48 · answer #2 · answered by Randy W 5 · 1⤊ 0⤋
If they did not put a stop payment on the check, they are obligated to go ahead with the loan.
Hopefully, the check really has cleared and you used another bank. Then you should have no problems. No, I do not think they can ask for the money back or get the money from your bank. Contract law.
I am not a lawyer. Check with an attorney before doing anything.
2007-10-09 13:16:36 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Your dealer made you sign the papers but never really got the approval of GMAC (as you got your car from GM). Although, wrong on the dealer's part, this is a common practice. Dealers tell you that you are approved for the loan when in reality, your car loan approval process is still going on. They do this to secure a car sale. Generally, a title is not signed in such cases. Read the contract. There might be something regarding the car loan. If it mentions that the sale is valid in case of acquiring finance, the car won't be in your name. But, if it is, go to the dealer and talk to him about your car loan. If there is no other option, give back the car and get back any money that you paid as down payment. You must also factor in the cost of your trade-in, if any.
2016-05-20 02:14:47 · answer #4 · answered by leandra 3 · 0⤊ 0⤋
You need to ask them what the problem is. If you lied on your credit application and they discovered it, you'll have to pay back the loan immediately or possibly risk prosecution for bank fraud.
If they simply screwed up and approved a loan that they normally would not have approved, that's tough twinkies for them! They MUST abide by the terms of the contract that you signed. In that case, your ONLY obligation is to make the payments on time as you agreed to do. PERIOD!
2007-10-09 14:46:38 · answer #5 · answered by Bostonian In MO 7 · 2⤊ 0⤋
Once the papers are signed and you have possesion of the check, the legal matter is closed unless you miss a payment. The bank has already entered into the legal contract with you. It is too late for them to renig on your contract unless you break a provision of the loan agreement. I advise you not to even be a day late on any of the payments.
Beyond that you should contact a lawyer. Most lawyers will meet with you and tell you your rights for free.
2007-10-09 13:16:35 · answer #6 · answered by Phill Lee 4 · 2⤊ 0⤋
You have to call them and clear this up. If they demand the money back, I'd find another bank for the rest of forever. They can't change the terms after the monies have been dispensed. That's pretty half assed of them to even try, and should make you think twice about banking with them. It's their duty to make sure everything is in order before giving money out. But you can't just ignore a letter like that - you have to talk to someone at the bank.
2007-10-09 13:11:46 · answer #7 · answered by Anonymous · 1⤊ 1⤋
I do not think they can, but you must wait until the check clears. If it clears your bank you should be safe within 48 hours after that. In the meanwhile, do nothing but read your loan agreement! Save the letter and the envelope with mailing date on it. The credit departments of financial institutions are terribly slow to respond to anything. Watch your credit report as well and see to it that you do not have a mark against you. Good luck!
2007-10-09 13:14:20 · answer #8 · answered by Chris B 7 · 0⤊ 2⤋
I've never heard of anything like that happening once the borrower received funding. Hopefully, you have documentation from the financial institution showing that they approved your loan and also showing the specific payment terms that were agreed upon. If you have this documentation, and the financial institution asks for immediate reimbursement, get a lawyer.
2007-10-09 13:11:11 · answer #9 · answered by Stephanie73 6 · 1⤊ 1⤋
check the name and address on the letter that said the loan was declined--is it yours? If yes, check the signer's name and contact them. Probably he or she read off a list of names and took one above or one below where they were supposed to send it. Similar thing happened to me once. I was hired at a firm in Ohio by the top boss, and had been working for three days already when I got a letter in the mail that my application was declined. It was clearly an error.
2007-10-09 13:14:09 · answer #10 · answered by Mike 7 · 1⤊ 1⤋