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

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

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.

Quote:

---

Originally Posted by 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.

---

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

Tick

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.

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.

Quote:

---

Originally Posted by 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.

---

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.

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 the fraud.

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

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.

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

Correct, breach of contract is just that you failed to pay, so theywill win if you can't prove you paid for the car.

The breach has nothing to do with the lies, that would be fraud

The bank stated in their case that they would not have given me the loan without the dealer's false information. I don't have to prove that the dealership lied because the bank already investigated and determined that the dealership knowingly submitted false information. I just think that there would not have been a contract for me to sign if the dealership hadn't lied. I guess I'll have to wait and see what the attorney says. Thanks for all your input.

Does not matter, this may give you grounds to sue the dealership but at the end of the day, you got the loan, and failed to pay that is the breach.

Quote:

---

Originally Posted by Fr_Chuck

does not matter, this may give you grounds to sue the dealership but at the end of the day, you got the loan, and failed to pay that is the breach.

---

Ok, new question then. If the bank is sueing both of us for the full amount of the loan, who gets stuck with the bill?

Whoever the bank can collect from. They can't double dip. So, if they can collect from the dealership, it will let you off the hook.

But, if the dealership did this, they may also be facing criminal charges and probably have financial problems. Which is why the bank is going after you as well. Is the suit part of a single action or are there two separate actions?