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Zachary
Zachary, Attorney
Category: Legal
Satisfied Customers: 3830
Experience:  Lead trial/International commercial attorney licensed 11 yrs
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My car loan was not fully disclosed, i.e interest rate and

Resolved Question:

My car loan was not fully disclosed, i.e interest rate and amount financed. I did not sign the promissary note nor did my co-borrower. We agreed on a certain monthly payment and they allowed us to take the car. After receiving the first couple of bills, we realized the monthly was higher than agreed upon. After receiving a copy of the lender's agreement from the fiannce company, none of our signatures match and I know for a fact that my co-borrower did not sign. In fact, the sinatures don't match our driver's licenses either. I believe dealership signed the papers for us. Am I liable for the loan? Who is at fault?
Submitted: 2 years ago.
Category: Legal
Expert:  Zachary replied 2 years ago.

Zachary D. Norris :

Hi are you there?

Customer:

yep

Zachary D. Norris :

I'm shocked at what happened to you.

Customer:

Yes, this has never happened before

Zachary D. Norris :

Generally, a loan must be in writing in order to be enforceable. Since the writing is a forgery, you have a defense to its enforcement.

Zachary D. Norris :

However, this is the passive way of handling it, as it has you waiting to be sued or have the vehicle repossessed before you take any legal action/

Zachary D. Norris :

You technically still owe money for the car.

Zachary D. Norris :

And you won't be able to enforce the loan amount they told you it would be either, since you did not sign the original documents.

Zachary D. Norris :

So the real question is how much do you owe for the car.

Customer:

I figured. I wanted to stop in there and get the remainder fo the paperwork. We want to trade the car in for another.

Zachary D. Norris :

Well. Aren't you concerned about continuing to do business with a dishonest car dealer?

Zachary D. Norris :

You have a major issue going on where they have fraudulently signed your name to a promissory note

Customer:

We wouldnt go back to them. The car only has about $8 grand left on the note, but we would be put in a negative equitable postiion.

Customer:

Im more worried about the forgery

Zachary D. Norris :

Absolutely. How much have you mistakenly paid under the forged note?

Customer:

Only about $120 extra a month

Zachary D. Norris :

And how many payments did you make before you discovered the forgery?

Customer:

the $$ wasnt the issue, we've been paying for about 9 months

Customer:

simple interest loan, but it was the finance rate, couldve gotten a better one though another lender

Zachary D. Norris :

OK. But the question is really about whether the car dealer can say that you have waived your right to complain about the forged note by making payment under the arrangement without any complaints

Zachary D. Norris :

So, did you notify the car dealer that the note was forged when you discovered it?

Customer:

Not yet, wanted guidance before I go down there

Customer:

and if i should press charges

Zachary D. Norris :

OK. And just so I'm clear. How many payments have you made since you discovered the forgery?

Customer:

9

Zachary D. Norris :

OK. The dealer is still at fault for the fraud, and 9 months of payment should waive any of your rights

Customer:

would the loan be null and void, car taken back, and downpayment reimbursed?

Zachary D. Norris :

OK. Thanks. That's what I was getting to.

Zachary D. Norris :

The note is null and void.

Zachary D. Norris :

However, the car has a fair value which must be paid to the dealer.

Zachary D. Norris :

Since you have kept the car for a while, a court would like strike a balance as to what is owed for the car, if anything, and what punishment should be paid by the dealer to you.

Zachary D. Norris :

So if you weren't going to court, the question is how to handle it.

Zachary D. Norris :

I recommend shooting for a walk away deal

Customer:

thats what i thought before getting into court and lawyer costs.

Zachary D. Norris :

You should see if they will simply take the car back and then cancel the note and call it even

Customer:

but don't want to lose the $6500 we put down

Zachary D. Norris :

OK. What is the value of the car?

Customer:

we bought it at $13,500, but its worth around $7000, with around $8500 financed left on the note

Customer:

screwed on the interest rate

Zachary D. Norris :

Ok. So if you have paid $6000 on it and its worth $7000, then I think you should argue with them for a payment when you turn the car back in, along with a release of the note, and you will release your claim against them for fraud and deceptive trade practices.

Zachary D. Norris :

I would ask for $3,000.00 and be willing to negotiate down from there a bit.

Zachary D. Norris :

Your leverage is that they really have broken the law in a very disturbing way, and a jury would punish them for it.

Customer:

ok, sounds reasonable

Zachary D. Norris :

A lawsuit may not end up making a lot of money for you personally, and would be a hassle in the long run, but they need to think that you are angry and would go through with it.

Zachary D. Norris :

So you threaten them with suit unless they comply with your demand. The person you will be talking to will likely deny that the note is a forgery and state he has no information on which to base his decision, etc.

Customer:

we just need enough to put down on another vehicle

Customer:

thru a different dealership of course

Zachary D. Norris :

Just stick to your guns and show them proof that it is a forgery. And then demand twice as much money as you want to get in the long run.

Customer:

ok thanks for your help

Zachary D. Norris :

They will always want to offer you less than what you demand.

Zachary D. Norris :

Good luck. And if they don't given in, call the Attorney General's office and start making a complaint through them. They can assist you for free and get you money in state penalties if actual forgery is established.

Zachary D. Norris :

If this has answered your question, please click "Accept"

Zachary D. Norris :

Thanks,

Zachary D. Norris :

Zachary D. norris

Zachary, Attorney
Category: Legal
Satisfied Customers: 3830
Experience: Lead trial/International commercial attorney licensed 11 yrs
Zachary and 12 other Legal Specialists are ready to help you

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