Legal Question in Credit and Debt Law in Texas

Auto finance question

I recently purchased a 2002 Nissan Xterra.

I had obtained pre-approved credit through Nissan Motor Acceptance Corp. online. I brought this letter with me to the dealership and made my purchase.

I received a phone call 17 days later from the dealership. They said there was a mistake on my financing and that it should have been higher. They asked me to come in and resign.

I reread my contracts. Nowhere on the Retail Installment Sale Contract, (Simple Finance Charge,) does it say anything about ''subject to financing''.

I contacted NMAC. They do not have any record of an account under my name or social security being submitted.

I called the dealership and told them my contract says nothing about �subject to finance�. They told me they had decided to pay the difference in financing themselves and ''re-submit'' the information to NMAC.

According to my contract, if I am late with a payment there are several penalties.

My first payment is due in a month and I should be billed for this payment. If NMAC doesn�t have any record of my purchase of the vehicle and I am unable to pay due to not having an account, can I be found at fault? Do I need to contact a lawyer at this point?


Asked on 1/21/02, 6:47 pm

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Auto finance question

The letter pre-approving your credit should have some information identifying the account, or at least who handled the pre-approval. Contact NMAC by phone and by mail, explaining what's gone on, and requesting account identification so you can make your payments.

Make certain your payments are not late; that they are received by NMAC or whomever is identified as the lender in your Retail Installment Sales Contract. If your payment is late, they can repossess your vehicle.

I would also contact the Consumer Fraud Division of the State's Attorney General's Office and present the facts to them. It may be a 'bait and switch' to jack up the interest rates or increase the down payment. If the dealership has shopped your paper through a lender other than NMAC, and has it at a rate higher than on your contract, that's a violation of the Texas Deceptive Trade Practices/Consumer Protection Act.

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Answered on 1/21/02, 7:04 pm


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