Full question:
I purchased a new car and traded in my car and put $20K down. The car has less than 4K miles on it. My mother traded hers (sight unseen) to the dealer for a used car with $10K down. This all took place in 2 hours! That was last night (Saturday) and as driving home I knew. I now want to resend. Does the truth in lending apply to us? We are in Arkansas. I really don't think I can afford the payment and my mom was had I know.
- Category: Contracts
- Subcategory: Recission
- Date:
- State: Arkansas
Answer:
In certain situations, you can cancel a contract under the federal cooling-off period, which allows you to rescind a purchase made in your home or at a location that is not the seller's permanent business within three days. However, the Truth in Lending Act (TILA) does not apply to all credit transactions. It primarily covers loans secured by real property or personal property used as the consumer's principal dwelling, and it does not apply to private education loans exceeding $25,000. To rescind a loan, you must notify the lender in writing; a phone call is insufficient. You can mail the letter before the deadline, and it will be considered valid even if it's postmarked later. If your contract does not allow for cancellation, you might still have grounds to rescind based on fraud, incapacity, duress, undue influence, material breach, or mistake. Contracts are legally enforceable agreements between parties, and a breach occurs when one party fails to fulfill their obligations. Remedies for breach include money damages, restitution, rescission, reformation, and specific performance. Rescission terminates the contract, while restitution aims to return the injured party to their original position before the contract. If you believe you have grounds for rescission, it may be beneficial to consult with a legal professional.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.