Legal Question in Consumer Law in New York

car loan gone bad

i went to a dealer on 11-8 and drove away with a car.... now i am being told i have to return it because they cant get it funded. They are unaware that I know they need to send me something in writing request the car back within the first 10 days (11-18). They have not done that but are threating to have the police hunting me down and come to my place of employment tommorrow because they are going to report it stolen. Can they really do this and if so do I have any rights. Thanks a bunch Im just trying to get to day 11 without receiving the written request.


Asked on 11/13/08, 7:06 pm

2 Answers from Attorneys
Michael Markowitz Michael A. Markowitz, PC

Re: car loan gone bad

You realize that if the dealer is not able to receive a loan for the car you would be held responsible for payment. Under laws of equity, you cannot have use of property that is not a gift without consideration (payment). Furthermore, the dealer may be able to repossess the car upon your failure to make payment.

To specifically answer your question, the car would not be deemed stolen since the dealer gave you the car. The dealer would either have to repossess the car or commence an action for an Order of Seizure.

Mike.

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Answered on 11/14/08, 7:56 am
Andrew M. Doktofsky Andrew M. Doktofsky, P.C.

Re: car loan gone bad

This appears to be what is known as a "yo-yo" sale, where the dealer is trying to change the terms of the contract after the transaction is complete. Often the reason is that the dealer was unable to obtain financing at the promised rate. In this situation, the dealer may be in violation of the Truth in Lending Act (only if the amount financed is under $25,000) and/or the Fair Credit Reporting Act, in addition to being in breach of contract. If you are in the New York City/Long Island area, please contact my office directly to discuss your situation further. Otherwise, go to naca.net to find a consumer law attorney in your area.

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Answered on 11/14/08, 10:12 am


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