What to do about a rescinded car loan?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What to do about a rescinded car loan?

I purchased a vehicle through on Friday. I signed all the paperwork, paid 1600 down payment. I was told I had financing through a bank. Today 4 days later I receive a call that the bank is taking back the offer and I need to return the car ASAP. If I do not they will repo the car and I will lose my down payment. Can they do this? They stated the reason the loan is not going through is that I am employed part time. I make $20.25/hr at 30 hours per week. How can they do this?

Asked on February 11, 2014 under Business Law, Pennsylvania

Answers:

Brook Miscoski / Hurr Law Office PC

Answered 10 years ago | Contributor

Just because you drive away with the car doesn't mean that the loan is yet official. Probably the bank wasn't willing to make the loan, which is why you now have this issue.

From the bank's perspective, the fact that you are part time is significant because it presents the possibility that you will have further reduced hours. The bank doesn't know you, and can't tell whether you're the guy who always gets 30 hours a week at that rate.

Whoever told you that you had financing when you drove off with the car was lying to you. It takes longer than that for the bank to finance the loan. Maybe you would have rights because of that...in Texas our DTPA statute is helpful when an auto dealer lies about a customer's legal rights, but it's hard to say how this has cost you any money, so your recovery might not be very good in Texas.

Alternatively...did you represent that you were employed full time? That might be another reason why the loan would be rejected, if you honestly enough represented that $30,000 a year is like being employed full time, but technically it's not really a full time job, so technically the loan application would be falsified.


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption