Legal Question in Credit and Debt Law in Maryland

Car purchase for Sister

My fiance purchased two cars at the same time, same dealership for himslef and his sister. His sister provided the down payment but due to her poor credit the dealership required that both car loans be in my fiance's name only (no co-signers). One car payment came to my fiance and the other car payment went to his sister's mailing address in his name. She made the payments for the past 2 years. Then one day she showed up in a new car and indicated that the car he bought was a ''lemon'' and returned it to the finance company. Come to find out, the car was repossessed and the finance company is now looking to collect (understandable). We explained the situation to the finance company and they indicated to us that it is illegal to purchase a vehicle for another person and we have no recourse against her. Is it true it is illegal? If so, wasn't the dealership wrong in allowing the sale? Second, is there any recoarse, whether the sale was right or wrong, against his sister?


Asked on 11/12/03, 6:47 pm

1 Answer from Attorneys
G. Joseph Holthaus III Law Offices of G. Joseph Holthaus

Re: Car purchase for Sister

This dealership doesn't understand property law very well. Yes, they can repo the car if it is not paid for and it will go against any signature on the loan. If she had and used the car then, at a minumum, he has an equitable claim against his sister. Making claims against family members may be problematic.

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Answered on 11/12/03, 8:12 pm


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