Full question:
I purchased a car on Jan. 19, 2009 thinking everything was taken care of with my loan. I had all the paperwork, took out insurance, and bought a tag. I receive a call today saying the bank who was going to do my loan has refused (10) months have gone by and I need to redo the paperwork or they get the car. I paid $5000.00 down payment on the car which they would refund. What are my options?
- Category: Contracts
- Date:
- State: Mississippi
Answer:
In most cases, at the time of purchase, the purchaser of a car must sign a promissory note to a lender/bank in order to receive the money necessary to purchase the car. The terms of payment are spelled out in the note, especially when monthly payments are required.
Once the note is signed, the lender will "cut a check" to the borrower or car dealer. Once the vehicle is paid for, you would obtain title to the car (with a lien placed on it by the bank). With title, you can register the vehicle and purchase insurance.
A borrrower must receive copies of all loan documents. You would want to review the terms of the loan closely to determine if the bank reserved any right to rescind the loan.
The loan is a contract between the borrower and the lender. The written terms will determine how the issue is resolved. If the lender has breached the terms of the agreement, there may be remedies available.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
