Legal Question in Consumer Law in Virginia

Car loan approved then reniged for higher terms

I went to a dealership where they pulled my credit report. Although it is not stellar, the General Manager said he would offer me 0 down and 6.9% financing. He sent me to finance where I signed the contract and all the documents, received payment amount, ordered insurance, received temporary tags...the whole nine yards. I drove off the lot with the new car.

The next morning, I get a call from the car dealership asking me to come in. The GM says, I am so sorry but the bank was closed last night and I thought I could get that rate for you but as it turns out, I can only approve you for a 15.5% loan! You can still keep the car but your payment will not be 360/mo at a 6.9% interest. It will be 459/mo at a 15.5% interest.

I said, how can you renige on a contract that I have signed and you have as well. He says there is a clause in the state of Virginia that allows him to do this.

Question: Is this so?

1 Answer from Attorneys

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