Legal Question in Consumer Law in California

Questionable request from a car dealership.

I am buying a car for the first time and although I have a Pre-Approved Loan Certificate the dealership is demanding that I provide them with a 19k check to �hold� until my credit union wires/pays them for the car. I have explicitly told these people that if I wrote them a 19k check it would be fraudulent because I don�t have that kind of money in my bank account. The guy at the dealership is saying �it�s ok, we won�t cash it� but can provide me no accompanying documentation proving the check won�t be cashed. This seems awfully unorthodox and I have no intention of giving this guy a check.

Is writing a check like this illegal? If so what are the penalties? Wouldn�t it be some kind of federal crime?


Asked on 4/28/05, 12:01 am

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

Re: Questionable request from a car dealership.

Don't write them a check, bad or otherwise. They would take it to the bank by supersonic jet, deposit the difference between 19k and what you have in the bank, and cash the check, and you wouldn't have the car yet, and you would have a wonderful fun time trying to get your money back. This dealer doesn't pass the smell test. Find a different dealer.

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Answered on 4/28/05, 12:32 am


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