Legal Question in Credit and Debt Law in California

Dealership approving Autoloan knowing applicant had $5,000 debt and calling it c

A local dealership granted a customer (Ex Husband) a new car loan thru it's own finance company. Knowing that the customer hadt debt(s) including a brand new pickup $5,000.00 . wich was co signed by me (ex-wife). He asked if it would default to me and the finance manager said no. It did. I have a legal dissolution that clearly spells out property and debt, the seperation thereof. He now has a brand new pickup from this dealer. The lender (a seperate finance co.) has contacted me to collect the $5,000.00. The selling dealer had full knowledge of the personal situation as he is a personal friend. Can I take action on the dealer? If so, can they pay for the debt as well as pay personal (stress,bad credit rating on otherwise perfect credit, Disrupting home improvement plans that took months to attain)

damages?


Asked on 7/11/00, 12:21 am

1 Answer from Attorneys
Christine Ruby Christine M. Ruby, Attorney at Law

Re: Dealership approving Autoloan knowing applicant had $5,000 debt and calling

It depends upon the date of separation and the date of default. It also depends upon who got the $5000 debt in the separation agreement.

Your account of the facts is vague. However, it appears the dealership will not be liable for anything, as all they did was extend credit. Even though they may have used bad judgment in doing so, the liability will lie with yourself and/or your ex-husband.

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Answered on 9/09/00, 3:30 am


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