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Question: I bought a car from a dealer and signed a retail installment contract. The car dealer said he would sell the contract to a bank. The car dealer called me giving me a list of lies they want me to tell the bank that’s financing the car, such as: they told them I worked for a different company, making two times more than what I do make, and they said my car has all these upgraded features that it does not have. I wrote it all down and hung up saying OK. But I am not going to do that. I want to know what’s the best way to proceed? And will I be entitled to get my down deposit back? The bank financing it has been calling to confirm my contract but I haven’t answered yet.
Answer: What the dealer asked you to do is a serious crime under both federal and state law. The dealer submitted false financial information to the bank and wants you to participate in the fraud.
Contact the bank and tell them that you have reason to believe that the dealer submitted an inaccurate application and that you want to make sure they have accurate information. Follow up in writing so that you have a record that you disclosed the true facts to the bank.
Many dealers make their sales contingent on their ability to find a bank to purchase the contract. If so, the dealer may be entitled to get the car back. You are entitled to get your down payment and trade in back, without any deductions.
You really do not want to have anything to do with this dealer.