Legal Question in Consumer Law in California

Automotive "Straw" Purchase

I live in California and my friend also lives in CA. He had bad credit and could not get a car loan so he asked if I could get the loan in my name and he would pay the loan so I said sure because I didn't know it was wrong I just figured people do that alot. Well the vehicle I purchased was from a Bank and they gave me a loan for it, I still had no idea that this was wrong because the loan lady who gave me the loan knew that I was purchasing it for my friend and not myself. Well after about a year my friend started to miss payments which resulted in the vehicle being repossessed. I went to the bank with my friend to pay late payments and get the vehicle back. But that bank says that I broke the contract because the vehicle had not been my possession but in the possession of my friend, which the Banker stated was considered a Straw Purchase so they were not going to let me get the vehicle back. Now I have a repo on my credit report even though the banker doing the loan papers in the beginning knew what was happening. So is there anyway I can get this Repo off my Credit Report?


Asked on 1/15/11, 7:41 pm

1 Answer from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

No. You signed a loan for somebody with bad credit, and the result was obvious and predictable. How do you think your friend got bad credit in the first place? Now you also have bad credit.

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Answered on 1/20/11, 9:28 pm


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