Legal Question in Consumer Law in Colorado

Loan cancelled after purchase

I received an auto loan from a well known company. i received a check by mail within 3 days. I went out, putchased a vehicle from a dealer and presented the check as payment. The dealer accepted the deal as well as this cpmpany. Money exchanged hands and the deal was finalized. Almost a month and a half later, I get a call from the company saying to take the vehicle back, becasue the loan was not happening. I tried taking the vehocle back, but they wouldn't accept it, because they had already been paid for it, therefore it didn't belong to them. Two weeks after this, the finance company withdrew the money from the dealership. The dealership then called me and said they were checking with there lawyers to see if they had any legal standing for doing what they did. I am returning the vehicle on 6 Nov 00, because the company who did the loan, will not return phone calls from me or the dealer. I want to know if I have any legal standing in this matter, and if I do, what steps should I take to get things in motion?


Asked on 11/06/00, 3:33 pm

1 Answer from Attorneys
Richard Schroeder Richard O. Schroeder, Counselor At Law

Re: Loan cancelled after purchase

You need to review the contract you have with the company that provided the check to you. The auto dealer may be a holder in due course, which, with some limitations, provides for payment to them.

You are in the middle, depending on your contract with the dealer; you may owe them the money. Turning in the car may not release you from your obligation. You may have to file suit against both the dealer and the loan company in order to get this straightened out.

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Answered on 11/20/00, 1:47 pm


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