Legal Question in Real Estate Law in Texas

I bought a car from a dealership with a pre-approved loan check from my bank. All the dealer had to do was endorse on the front and back of the check to seal the deal. My bank did not pay out the loan because the check was not endorsed properly. I had to get another check sent out to me to give to the dealer. The dealer incurred $1300 in bank fees from his own bank for bad checks for bills he tried to pay with money he did not have yet due to not endorsing the loan check properly. He put a lien on the vehicle and is holding the license plates and will not give them to me. As of now, the vehicle has been paid for and the dealer has his money. He is saying his fees are due to me giving him a bad check when the fact is he didn't endorse it correctly. Can he put the lien on my vehicle for personal fees that he incurred with his bank? Can he hold the license plates from me? Shouldn't this issue be with him and his bank or him and my bank since they're the ones who didn't pay out the loan due to his inability to endorse a check? What steps should I take?

Asked on 8/05/10, 1:55 pm

Cheryl Rivera Smith The Smith Law Firm

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Sue the dealer in small claims court to recover the $1,300 and court costs. Be sure and take copies of all documents to prove your case.

Answered on 8/11/10, 7:07 am

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