Legal Question in Business Law in Illinois

12 months ago my mother and i purchased a car together. Due to bad credit the dealer was unable to get me approved. They put the car in my moms name using our combined income (my mom was unemployed at the time and received very little income) The deal was I would make the payments on the car for 12 months and keep records (canceled checks or bank statments) after 12 months the dealer would refinance a different bank that my application was processed through would pick up the loan in my name.. 12 months have passed I have contatced the dealer and they have no record other then my mom purchasing the car. They do not have the application I completed nor the copies of pay stub I provided. I am almost 100% sure they falsified the appplication to the loan company considering my mom was unemployed and making barley $1600 a month. The dealer advised the sales staff that was working with my mom and i on this deal have since been fired for their unethical practices... I am wondering if we have any legal recourse. We are not seaking any form of payment, however my mom and I would like the dealer to honor the deal to refinance even if it has to be directly through them or buy back the vehicle and cancel the loan.


Asked on 10/16/10, 6:13 pm

1 Answer from Attorneys
Stephen Messutta

You should definitely talk to the dealer, and not just one of the floor salespeople or even a manager, but ask to see the owner and get as high up as you can. The problem here is we don't know who is "holding" the loan (the dealer or a bank) and if it's a bank you may be stuck unless the dealer is willing to pay off the loan itself. But you can see if the dealer is willing to work something out --- if it won't take the car back (rescission -- your reasoning is that you were unduely influenced and defrauded...but there's no paperwork to prove it...), maybe it can still figure a way to swap a car you can afford (after a discount equal to what you put into the car you have) on loan terms that work for you. If not and this is a "name brand" dealer like Chevy or Ford, you can contact them but good luck even if they need every buyer. And even if not you also have the Better Business Bureau and the Illinois Attorney General office of Consumer Fraud & Protection. The problem with rescission is that it requries your tendering the car back, and they can refuse. Also , if you are unable to keep making car payments the lender can repossess. So you may want to consider an attorney who can help you rewrite the loan with whoever holds the paper, but that could affect your credit too. If this seems too complicated, time to sit down in person with an attorney and work through this.

The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is currently licensed to practice law actively only in the State of Illinois, inactively in Florida. Responses are based solely on Illinois law unless stated otherwise.

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Answered on 10/22/10, 1:22 pm


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