This is a problem my elderly (72 yo) MIL has created and we're trying to find a solution to help her out of it...legally
The situation is this, she went with my BIL to a car dealership in TN, and purchased a 2006 van, in her name but it is actually purchased for him. She financed 22K, and the payments are well over $500 a mo. The problem is this, she only draws a monthly income from SSI of $488! There is no way she can make a payment of this amount let alone keeping full coverage insurance on it. BIL is a user & abuser and this is the 2nd time he's drug her into purchasing a car for him. The last time it was a 2004 Aztec which was repo'd! Now she has a balance of $8K from that fiasco that she's being dunned for.
My question is this, how could the dealership, legally allow her to purchase a vehicle of this amount when in reality she has absolutely no way to make the payments on it and how were they able to take his car, which he still owed on and was in arrears in on a trade in for this purchase. BTW, the car is in her name only, his name doesn't appear anywhere on the bill of sale or the paperwork she signed.
I worked in the car business for 3 years, and I lost a lot of deals because of income issues. To me it sounds like your MIL had excellent credit and the dealership did some shaddy work to get the car note approved. There is no way that a bank would finance a car based on only $488 of fixed income, you have to provied proof of income. The dealership, or BIL lied on the car App. The first step would be for you to get the bank to send you a copy of the original contract, and credit app. Tell them that you feel that there is fraud with the credit app. Also try to find out which bank financed the previous car note. If you notice on the credit app income greater than the $488 a month then you can sue the dealership & the bank because, its a federal crime to falsify info on a credit app, second the bank is suppose to verify some sort of income, they should not just hand out loans to anyone who claims they make more that what they really do. What state do you live in? Maybe there are some statutes that can help your case. If you need further advice post it here, I hope this helps you out, or points you in the right direction. -admin
She is in VA so we will definitely be looking into the options you posted here. Thank you for replying We are just in shock that this has happened once again with her.
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We are just in shock that this has happened once again with her.