Legal Question in Credit and Debt Law in Massachusetts
auto loan scam
I recently purchased a new vehicle from a dealership. I signed the normal paperwork for delivery, odometer, title, etc. I also signed for a 4 year loan of about half the car amount. The rate was good, and it appeared to be a straightforward auto loan document. I then took the car off the lot and drove home. The next day, the finance manager of the dealership called and said I had signed the loan with the wrong loan company and my car rebates could not be processed until I re-signed another loan with the correct company. They said the finance person I originally signed with was new and made a mistake. Question: am I legally obligated to re-sign the loan? Will signing another loan (cancelling the first), affect my credit score? What legal action can they take against me if I refuse to re-sign?
1 Answer from Attorneys
Re: auto loan scam
You may be obligated. If there is a credible error, the seller has the right to protect their sale. There has been no meeting of the minds.
You should find out what was wrong with the old loan, and compare the terms to the new loan. I do not think they can withhold rebates because of their mistake. This is some evidence of consumer fraud.
As a practical matter, I think that you should ask for some benefit from them because of their error.
If you have questions, or need assistance contact me.
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