Legal Question in Banking Law in Pennsylvania

Blank Check Auto Loan

My fiance and I recently purchased a vehicle from a used dealership and gave them a blank check auto loan from Capitol One. That night we signed all documents and they accepted the check as payment. The dealership is now requesting another check because they say they cannot use that specific check, so the dealership wants us to apply for another loan and send them a new check before returning the old check to us. I have contacted Capitol One on numerous occassions and KNOW that the check is good and that the dealership can cash it. All the dealership has to do is submit the legal documents of the odometer reading, title, etc. What are my rights????


Asked on 11/16/06, 11:51 am

1 Answer from Attorneys
Roger Traversa Arjont Group (Law Office of Roger Traversa)

Re: Blank Check Auto Loan

You asked about a situation with a car loan.

You have good instincts. Don't do what the dealership asks without additional advice or guarantees.

They fulfilled there part of the bargain by delivering the car and title. You fulfilled your part of the bargain by delivering a good check. If there is a problem with the check, and there very well may be, then it is up to them to prove it.

It may help you to contact an attorney and turn the matter over to him or her.

Regards,

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Answered on 11/16/06, 12:01 pm


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