Legal Question in Credit and Debt Law in Alabama
I just bought a new car. I was told that i was approved for the loan and signed all the paperwork. Its been two weeks and now they are telling me that i was'nt approved because they just realized that my new car made a third car loan. Can they do this?
1 Answer from Attorneys
Sometimes these deals can be considered "Yo yo" deals, when they tell you "you are approved" you leave the lot and a few weeks later they cant get financing for you and ask for the return of the car. However, since these cases are almost always in arbitration (not court) it makes it difficult for plaintiffs such as yourself to get any significant recovery. Also, some dealerships have you sign an agreement that states if financing is not finalized within a certain time frame (14-30 days) you must return the car. If you signed one of those, it would be a much more difficult case for your position.