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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Consumer Protection Law
Satisfied Customers: 12934
Experience:  B.A.; M.B.A.; J.D.
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I signed contract to purchase auto from auto dealer. Bank declined loa

Customer 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?
Submitted: 3 years ago.
Category: Consumer Protection Law
Expert:  Phillips Esq. replied 3 years ago.

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.

 

 

Phillips Esq., Attorney-at-Law
Satisfied Customers: 12934
Experience: B.A.; M.B.A.; J.D.
Phillips Esq. and other Consumer Protection Law Specialists are ready to help you
Customer: replied 3 years ago.
NO! YOU ARE TELLING ME THAT A BANK CAN DO ANYTHING THEY WANT TO DO TO THE BANK CONSUMER LOAN CUSTOMER! MAKE HIM WAIT UNTIL THEY CAN FIND A WAY THEY CAN FINANCE THIS VEHICLE AT THEIR BANK! THAT IS CONSTITUTIONALLY WRONG! I DECLINED THEIR OFFER OF LESSOR AMOUNT FOR FINANCING THIS VEHICLE. THE BANK HAD ITS CHANCE TO FINANCE IT AND DISALLOWED IT! I HAVE MY CHOICE IF I WANT TO TAKE THE OFFER OF A LESSOR AMOUNT TO BE FINANCED. I WOULD HAVE TO COME UP WTH MORE DOWN PAYMENT. I AM NOT GOING TO TAKE A LOAN FOR A VEHICLE THAT DOES NOT HAVE ENOUGH COLLATERAL TO FINANCE IT. THE BANK FINANCED THE TOTAL AMOUNT REQUESTED AS IN FIRST CHANCE TO DO SO & DECLINED THE LOAN. I WOULD BE PAYING MORE FOR IT THAN IT IS WORTH. THE REFUSAL TO FINANCE DOCUMENT PROTESTS BOTH THE BUYER AND THE BANK. IF THE BUYER DOESN'T PAY FOR IT, THE BANK IS STUCK WITH A CAR NOT WORTH THE LOAN. THE BANK DENIED CREDIT FOR THE ORIGINAL AMOUNT. THEY SHOULD HAVE HAD ENOUGH INTELLIGENCE TO FINANCE IT WITH THE LESSOR AMOUNT OFFERED IF THEY WANT TO SCREW ME! I'M NOT GOING TO WAIT FOR THIS BANK EVENTUALLY COME UP WITH ANOTHER LOAN APPROVAL. THAT IS STUPID. IF THEY CAN'T DO IT THE FIRST TIME, THEY WON'T THE SECOND TIME. HOW MUCH TIME AM I SUPPOSED TO GIVE THIS BANK? I WOULD PROBABLY LOSE THE VEHICLE BECAUSE OF A TIME LIMITATION TO COMPETE THE DEAL, OR IT WOULD BE SOLD TO SOMEONE ELSE! THE BANK AUTO LOAN OFFICER THANKS THE CUSTOMER FOR TRYING THEIR BANK. BANK WILL TRY AGAIN TO HELP HIM AFTER HE FINDS ANOTHER VEHICLE THAT WILL QUALIFY FOR THE LOAN. PLEASE COME BACK & SEE US THEN. WE WILL BE HAPPY TO HELP YOU! THANKS FOR STOPPING IN! I WAS AN INVESTIGATION OFFICER IN THE MILITARY! THIS SITUATION STINKS OF AN ILLEGAL BANK PROCEDURAL & PRACTICE USING A FEDERAL LAW, WHICH IS AGAIN, RATHER STUPID! BANKS CAN BE HELD ACCOUNTABLE FOR FRAUD. IT ISN'T JUST INDIVIDUALS WHO COMMIT BANK FRAUD.THIS BANK TOLD ME IF I DID NOT TAKE IT THEY WOULD RUIN MY CREDIT RATING! NICE PEOPLE! I DO NOT AGREE WITH YOU!
Expert:  Phillips Esq. replied 3 years ago.

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.

 

Customer: replied 3 years ago.

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!

Customer: replied 3 years ago.

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!

Customer: replied 3 years ago.
PLEASE EVALUATE MY ABOVE STATEMENT & PROVIDE YOUR ANSWER! IS IT CORRECT LEGALLY?
Customer: replied 3 years ago.
AM I RIGHT OR WRONG?
Customer: replied 2 years ago.
I have never heard of such a thing as a continuous amount of time to find a source for financing a vehicle. How long will a dealer hold the car for the buyer? I have purchased over 200 vehicles for my family. I am 75 years of age. When I received a federal refusal to finance letter, it usually states I can accept a contingent amt of funds or decline. If not answered within 30 days the contact is nil & void. This application and contract is terminated; as I explained, I would have to sign a reconsideration application for a new loan process. The last contract is terminated. The bank had its chance to finance it within their own facility. For the bank to go elsewhere to get the money is rediculous! I have to wait until the bank finally finds a source of finance? It may take a week. I may need the vehicle now. And no, I am not renting a vehicle in the meantime so the bank can continue looking for that source of financing elsewhere.
Expert:  California Lawyer replied 2 years ago.

Hello,

 

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.

 

DCG

Customer: replied 2 years ago.
Please refund my money. The bank had their chances to find financing for this auto loan before sending out an Official Federal Letter of Rufusal to the Buyer.

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