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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 111600
Experience:  Attorney experienced in commercial litigation.
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Can a lender chargeback a dealer for a discrepancy in a

Customer Question

can a lender chargeback a dealer for a discrepancy in a bookout on a used car. The lender does not have auction pictures to verify. They are using a third party to vin decode.
Submitted: 1 month ago.
Category: Consumer Protection Law
Expert:  Phillips Esq. replied 1 month ago.

Hello: This is Phillipsesq. Welcome to JustAnswer! I am reviewing your post, and I will post my response very shortly. Thank you for your patience.

Expert:  Phillips Esq. replied 1 month ago.

Could you please explain a little more?

Thank you for your cooperation,

Customer: replied 1 month ago.
Compass bank is charging the dealer back for and discrepancies in used car bookouts. Compass is using a third party to vin decode. I have asked for pictures buy they won't supply.
Expert:  Phillips Esq. replied 1 month ago.

Thank you for the information.

Your question:

can a lender chargeback a dealer for a discrepancy in a bookout on a used car.

Response: Regrettably, Yes. If the dealer disagrees, the dealer should go to the bank and speak with the branch manager to resolve the issues.

I am sorry that I do not have better news for you,

Customer: replied 1 month ago.
Needed more info. You would think compass would have to supply pictures.
Expert:  Phillips Esq. replied 1 month ago.

I do not have any more information to provide. So, I will opt out and give another Attorney the opportunity to comment on your case.

Best wishes,

Expert:  Maverick replied 1 month ago.

Welcome to Just Answer! My name is Maverick. Please give me a few minutes to review your inquiry. Thank you for your patience.

Expert:  Maverick replied 1 month ago.

I agree that a lender may charge a dealer back for a mistake in the bookout; but it is unclear what is the nature of the discrepancy and what it is that you would like to see happen here. We need more background facts and need to understand what it is that you are trying to accomplish so we may better assist you...

Customer: replied 1 month ago.
Maverick, can they charge back without proof of colateral discrepancy? Meaning auction pictures .
Expert:  Maverick replied 1 month ago.

I need more background info to assist you. I will opt out and see if another expert can assist you with the limited information you are willing to provide.

Expert:  Law Educator, Esq. replied 1 month ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
I am a DIFFERENT CONTRIBUTOR as your previous contributors have left.
Actually, the lender does not need pictures to chargeback for the discrepancy. They can check the VIN on the bookout and if they come up with different values based on the VIN alone, that is their right to seek to claim the discrepancy. If the dealer disputes the discrepancy, then the dealer has to present evidence to refute the VIN service numbers, but checking the VIN through a third party service is sufficient for the lender to meet their burden of proof and then the burden of proof shifts to the dealer to prove the lender is wrong.
There is nothing saying pictures are required.