Thank you for giving me the opportunity to assist you. I encourage you to ask me for clarification, if you are not clear with my Answer.
Question: I signed contract to purchase auto from auto dealer. Bank declined loan same date as contract. Not enough collateral in vehicle. Then bank financed it and told me I had to take the car, because I signed a legal contract. I did not sign another cotract. Bank told me they used contract on vehicle that it declined to finance. Told me that they would contact the three credit reporting agencies & ruin my credit. They financed the total amount on the Refusal letter, not the offer to finance. I this legal?
Response: Yes. Unfortunately, the contract you signed for the purchase of the car and the loan application you made for financing of the car are two different things unless your contract was contingent upon you getting financing on the first try. If this is the case, then once you received the refusal letter from the bank, the contract became null and void and thus the bank's attempt to finance the second time around would be void. However, if your contract is not contingent on financing approval on the first try or even second or third tries, etc., you are still liable to purchase the car under the contract and the dealer can hold you responsible for the contract and the bank can try to still finance the vehicle after an initial denial. So, you need to review the contract that you signed with the dealer very carefully. You also need to review the Offer to Finance and refusal letter very carefully. Your remedies would be on those three documents. Nonetheless, you can walk away from the purchase and refuse to take the delivery of the car and refuse to make any payments on the car. Then the bank may report you to the credit reporting bureaus for non-payment.
You can sue the bank for unfair and deceptive practice and ask the Court to order the bank to remove the derogatory information from your credit file, for going ahead to finance the purchase of the vehicle knowing that there is not enough collateral on the vehicle.
I will opt out and give another Expert the opportunity to further assist you.
Do not reply to me because doing so would delay a response from another Expert.
BANK PRESIDENTS SHOULD HAVE THE SHIT BEAT OUT OF THEM! I HOPE THEY DO SOMEDAY. I AM NOT DOING IT. HOPE SOMEONE ELSE WILL!
NO! U R A WASTE OF MY TIME......YOU THINK BANKERS CAN DO ANYTHING THEY WANT TO THE BANK CUSTOMER.
I WANT NOTHING TO DO WITH YOU!
FORD FINANCE REFUSED TO FINANCE THIS AUTO LOAN. IT WAS THEN SUBMITTED TO PLATTE VALLEY BANK, KEARNEY, NE 68848. A PURCHASE CONTRACT IS IMMEDIATELY IN SEARCH OF A BANK TO FINANACE THIS VEHICLE. IF IT IS AGREEABLE THE BANK WILL FINANCE IT. THIS PURCHASE AGREEMENT & CONTRACT DOES NOT STIPLULATE IT WILL SEARCH UNTIL DOOMS DAY TO FIND FINANCING FOR THE BANK CUSTOMER WITHIN THEIR BANK. IN THIS CASE, IT WAS PLATTE VALLEY WHO ACCEPTED THE APPLICATION TO FINANCE FROM CROSSROADS FORD. *ACCEPTED AND DECLINED, WITH THE SAME DATE ON BOTH OF THEM.
THE OFFICIAL REFUSAL TO FINANCE LETTER TERMINATED THE ACTION. THE BANK ITSELF CANCELLED OUT THE APPLICATION TO FINANCE!
UNLESS THE BANK CUSTOMER ACCEPTS THE BANK'S LESSOR AMOUNT OF MONEY TO FINANCE THIS VEHICLE, IT'S DONE! THE CUSTOMER CAN GO ELSEWHERE TO FIND FINANCING FOR THIS OR ANY OTHER VEHICLE!
I believe the above expert provided you a correct answer. I realize that is not what you want to hear, but the purchase and financing are separate agreements unless one is incorporated in the other.
I hope this helps.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).