Legal Question in Business Law in Alabama

They approved my financing and two weeks later they said they made a mistake

I recently got a car from a dealer. I told them to start my credit was very bad.I had been in a chapter13 and by choice let it be dismissed and now am paying my creditors on my own. They took my info. and later came back and gave me a choice of 4 cars I qualified for. I picked a car and signed all the papers at least one of which had my monthly payment amounts and a banks name on it. Now about two weeks later they say they made a mistake. He says because my chpt.13 had been dismissed instead of discharged they couldn't do the loan. I hid nothing form them when applying and if they would have said no to start with fine. But now I no longer have my old car because sold it I will have nothing to drive I've bought liscense plates and am paying a much higher insurance premium. Furthermore We have shown this car to all of our family and most of our friends and they are going to wonder what happened and I don't want to tell them. Is there anything I can do?


Asked on 9/12/02, 8:25 pm

2 Answers from Attorneys
Michael McNair M. S. McNair, Attorney-at-Law, P.C.

Re: They approved my financing and two weeks later they said they made a mista

There might be something that you can do, but you need to have an attorney go over all of the paperwork that you signed and find out exactly what the facts are.

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Answered on 9/13/02, 12:50 pm
Robert Kreitlein Robert Kreitlein, Attorney at Law

Re: They approved my financing and two weeks later they said they made a mista

Well, for starters, are you current on the loan at this time? Once the transaction was complete and they turned over the money and you signed on the line, the loan agreement is going to govern anything else that happens. The only way they can take the car back at this point is if the loan agreement allows it. Generally speaking, most loan agreements are only going to allow that if you have defaulted on the loan somehow. If you are current on your payments and are keeping insurance on the car like you're supposed to, they really can't do anything. An attorney needs to review your loan agreement and all the other paperwork but I would certainly not agree to anything until you get an attorney involved. I think you may have a strong case to keep that vehicle and the loan.

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Answered on 9/13/02, 2:16 pm


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