Legal Question in Credit and Debt Law in Arizona

Auto reposession due to late loan denial

I bought a car at a big car lot, picked what I wanted and did paperwork. Got home and two days later I got a call to bring the car back that the loan company wanted me in a new model car. Went back to the dealer and got into a new car, was told the loan was approved and I would get no more call to bring back the car. My mother was my co signer due to the fact that I have no credit. This was two weeks ago, my mom lost her job just this morning, by afternoon I got a call to bring back my car again. Is there anything that I can do? I was the one who would be paying it and I was told that I wasn't going to have to bring it back.


Asked on 4/15/03, 7:42 pm

1 Answer from Attorneys
Debra Palomino PALOMINO LAW FIRM, P.C.

Re: Auto reposession due to late loan denial

If the loan has not been approved, the dealership can demand the return of the vehicle. If the lender becomes insecure about getting paid, i.e. your mom lost her job and payments are late, it can repossess the vehicle. You would have a stronger case if all payments have been made on time (if there have been any) and the loan has already been approved.

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Answered on 4/28/03, 2:15 am


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