Legal Question in Consumer Law in Georgia

Can a car dealer report the car you bought, stolen if the financing falls through a month later?

Husband bought a car almost a month ago. Went in with a pre-approval. Picked up the car the next day, assumed everything was final. A week later dealer called and said he had to verify employment/income again with the bank, which was done. Heard nothing for 2 weeks. Right before the weekend, received an email from the dealer with the subject "Your car has been reported stolen" Honestly thought it was spam at first... But it alleged that since they couldn't reach us and the financing had fallen through they had reported the car stolen. Called the bank, at first they said everything looked fine but after another call, they said it looked like the dealer pulled back the loan. Told to call back during the week to speak with a manger to get it sorted out. That Monday evening, got a voicemail from a number neither of us recognized. It was from the dealer stating that a warrant had been issued and the car had been reported stolen. 30min later, husband was arrested and has now spent 6 days in jail. For allegedly "stealing" a car he thought he bought. I have all the documents he signed. There is a bailment agreement in case the financing falls through but it says "the Dealer shall have all the rights of a secured party with a perfected security interest under the Uniform Commercial Code." and "In the event the buyer's application for credit is disapproved, the dealer shall have the right to repossess the said vehicle." Is it legal for the dealer to file a police report claiming the car was stolen, have husband arrested and held on felony charges, and have the police seize the vehicle for them? They now have the vehicle back (which also was posted for sale online 3 days before the police seized it), have kept his downpayment and refuse to drop the charges so he cannot get out of jail. I don't understand how they can do this.


Asked on 9/15/18, 11:32 am

1 Answer from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

People arrested in jail get good criminal lawyer - they don't go to websites. Do today (or first thing monday) what you should have done immediately - get a criminal lawyer. If you had done that, and there is no more to the story, it is likely your husband would have been out of jail the same day or next day.

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Answered on 9/16/18, 6:01 am


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