Can afinance company refuse to finance car because the co-signor has no driver’s license?

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Can afinance company refuse to finance car because the co-signor has no driver’s license?

I bought a car a week ago. Needed a co-sign because I already have a vehicle financed. My spouse co-signed. We signed the contract. I got the vehicle fully insured in my name only and we drove home. The next day, the salesman called and that said he forgot to get our DL. I faxed over 5 copies of mine and mt husband faxed his ID because he doesn’t have a DL. Now we are being told that the finance company may not make a loan on the car becuuse my husband has no DL; they think that I got the car for him.  I thought in TX, a DL is not requirement to purchase a car. Can this happen?

Asked on April 18, 2011 under General Practice, Texas

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

As for the specifics as to the law in Texas I would consult with an attorney in your area.  Co-signing on anything  - car, home, student loan - is a financial commitment and the requirements should not differ just because the "thing" that you are guaranteeing changes.  It is like saying that you can not guarantee a student loan unless you have gone to school or guarantee a mortgage unless you have owned a home.  It really makes no sense.  Wait and see what the bank or lender says.  Do not listen to the dealer.  And if you are denied because your husband has no driver's license then I would take the matter up with either the State Banking commission or attorney General's office.  Good luck.


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