I bought a car from a car dealership and had it repossesed a year later. The bank is suing me for breach of contract. They're suing the dealership as well. The dealership gave false information about me and my co-signer to get the loan. I did not know that false information was given until this lawsuit came about. I would not have signed the contract had I known that the dealership lied to get the loan. They lied about our living situatioun, our income, our relationship, and my co-signer's marital status and job title. My question is this: If the dealership lied to get the loan, am I in breach of contract? The contract was not drawn up in good faith, so doesn't that mean it was not a valid contract?
Thanks

tickle

You signed the contract without reading it ? If your name is on the contract, signed by you, agreeing to the loan, then I guess you are at fault same as the dealiership.

tick

molly99

The contract that I signed and the paperwork that they submitted to the bank were different. I signed an agreement to pay a monthly amount for this vehicle. They did not give me the paperwork that they used with the bank to get the loan approved.

tickle

molly, then there is a lot more going on then breach of contract, they commited an offence, probably fraud. Can you prove any of this, if so. I would have them charged.

tick

ScottGem

Here's the thing. If you signed a contract to pay a certain monthly amount and you defaulted that's on you. However, if the default was caused because the monthly payment was different then what you agreed to that's a different matter.

If the car dealership committed fraud by giving false information to the lender, then that is an issue between them and the lender and does not involve you unless the bank thinks you were a party to the fraud.

molly99

My thinking is that if the dealership had not lied, I would have not gotten the loan, therefore I would not have had a contract to pay the money. The bank is suing the dealership as well. The loan would not have been approved if the dealership had not lied. They lied to get approval, and they knew that they were lying when they got the loan approved.

ScottGem

Sorry, but that doesn't fly. You agreed, in good faith, to pay x amount per month for y months. If the bank would not have made that loan based on factual data, it MIGHT give you a cause of action against the dealer, but it does not let you out of the loan.

What is the bank suing you for? If its for repayment then they have that right. If its for filing false info, you will have to prove to the court that it was the dealer, not you.that provided false info.

Fr_Chuck

They may have crimnial charges against the car company for fraud, of course the car dealer ship could merely lie and say that is the info you gave them. What you will have going for you,
1. none of the false info will be in your handwriting
2. you did not sign any paper work with false info on it.

Now that does not stop them from sueing you for the difference between what you borrowed and what the car sold for at auction, that you will still owe.

But you should not have to worry about the criminal issues of of the fraud.

But you borrowed the money, and did not pay it back, for that you will have to pay the difference

molly99

What is the bank suing you for? If its for repayment then they have that right. If its for filing false info, you will have to prove to the court that it was the dealer, not you.that provided false info.[/quote]

The bank is suing me for breach of contract.

ScottGem

Well, you did. You contracted to make payments and you didn't.