Legal Question in Banking Law in California

Breaking a Contract

i went to buy a car. the bank approved me, but only with a co-signer. we signed the contract and i later received an approval letter from the lender which included the account number, terms of the the auto loan and where to mail payments. after i had taken possession of the car for about two weeks, the dealership called me and said i had to return the car because the lender no longer approved me. the lender/bank ASSUMED that my co-signer and i lived together, they therefore put our incomes together. (we gave separate addresses on the application and did not mislead anyone). when the lender learned that my co-signer and i did not reside together they did not fund the loan to the dealer. should i have to return my car?


Asked on 2/07/06, 2:09 pm

1 Answer from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: Breaking a Contract

If the lender won't pay for the car, then YOU haven't paid for the car. You either need to return the car or get another lender right away. You can take legal action against the original lender later unless you can convince them to go forward with the loan.

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Answered on 2/07/06, 2:15 pm


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