Legal Question in Consumer Law in Nevada

automobile loan

My mother signed for a car for me with the understanding that I make the payments. The dealership did not mention the situation to the bank and once the bank found out a month later they canceled the loan. I to was under the understanding that the dealership had informed the bank of the situation. They now call it a ''misunderstanding''. Eventhough they clearly knew the situation but they of course now tell me to show them this in writing. They now offer to either have me redo all my paperwork and probably finance me at a higher rate or return their car. Due to the fact that my trade in was upside down and it has been paid for by the dealership they explained to me that in doing this that by law all they have to do is refund me for my registration fee and basically that is it. I am left with no car. Umm, I'm not sure what to.


Asked on 2/18/04, 7:37 pm

1 Answer from Attorneys
Grenville Pridham Law Office of Grenville Pridham

Re: automobile loan

You do not have to sign new paperwork. This is a common scam. The back of the contract says that the dealer has 14 or 15 days to rescind the deal if they cannot get credit approved. You said that the dealer tried to rescind more than a month after you signed the contract. That is clearly outside of the time period for the dealer to rescind.

This is a deceptive trade practice. Since the dealer tried to rescind after the time period had run, you have a valid contract and the dealer is the creditor.

If the dealer is trying to rescind after the time period, do not go back there and keep all of the paperwork at your house or in a safe deposit box. Do not leave the paperwork in the car and do not take the car to that dealer for service because they will not give it back to you.

If the dealer is trying to rescind after the time period, you need to start making your monthly payments to the dealer. You should fax all correspondence to the dealer to document that you sent a request for the address to mail your payment.

If you do not start making payments, the dealer will then repossess the car claiming that you defaulted on payments.

Do not give the dealer your old paperwork. What was your interest rate on the new loan? The dealer probably ripped you off on the deal without regard to the bank financing, so they probably made money on the deal even if they have to finance it.

If you have more questions, you can make an appt for a consultation. I charge $45 for first 1/2 hour.

grenville pridham

614-3388

Read more
Answered on 2/18/04, 9:10 pm


Related Questions & Answers

More Consumer Law questions and answers in Nevada