My son was told he could purchase 2 cars (one for his girlfriend - who could not qualify) & one for him. He could do this if they did the loans separately so that the banks wouldn't catch it. He is now saddled with a debt greater than 50% of his income because... girl friend left. What banking laws has this dealership violated and what (if any) is his recourse to return the car that has not had a payment made because it isn't due yet.

He is stuck for the loan on both cars, if he signed for both. Dealership violated no laws.Did he sign the loan agreement for both cars?

The bank wouldn't catch it?

my son was told he could purchase 2 cars (one for his girlfriend - who could not qualify) & one for him. He could do this if they did the loans separately so that the banks wouldn't catch it. He is now saddled with a debt greater than 50% of his income because.......girl friend left. what banking laws has this dealership violated and what (if any) is his recourse to return the car that has not had a payment made because it isn't due yet.

Cute. He conspires with the dealer to defraud the banks and now wants to find some way to again stick it to the bank.

Is he on the title for the girl's car? He should take it and sell it. Even if he's upside down, it would be better than simply allowing her to drive it away.

Who has their name on the titles?

He signed the applications and at the time, he did not have a loan on the other car, so in reality the application most likely was not even a fraud, just a trick of the system.
Like applying for a loan on a car at two places to see the best interst rate and then only taking one, but in his case it was two separate cars and he took both.

He needs to sell one of the cars, and pay it off.

If it is the same bank, he needs to go in and talk to them to see if there is anything they can do to help.

But a person can have two or three car loans, I had three at one time in my life, ( but again I could afford all three)