Dealership still running credit applications eight months later

[mikifan]

In early July, 2013 I co-signed for my son to buy a vehicle at a dealership in Indiana. We were told we were approved, signed the paperwork and drove it home. Seven weeks later I still had not received the paperwork to get the plates and registration. I went back to the dealership and asked about this and they apologized and provided the paperwork. We went to the license branch and registered the vehicle, bought the plates and the BMV sent the title (with the lending institution named as lien holder) to the bank. The bank then simply sent the title back to us with no letter or note or anything. We had not heard from the lending institution about payment arrangements, so I called and was told they have no record of us in their system. When the license bureau sent the title to them they just forwarded it back to us and we are still in possession of it. Now, some eight months later, the dealership is still sending out credit applications on my son and me. I currently have 40 hard inquiries on my credit report and the credit denial letters just keep coming. I've tried to get a loan for this vehicle on my own but the dealership has caused so many hard inquiries that my credit is ruined. Is it legal for them to do this? If I could get those inquiries removed I could probably finance the vehicle and pay them for it. It was never my intent to "steal" it! I feel this was their error and they should at least call us, send a letter or in some way communicate with us to get this resolved, but we haven't heard a word from them. I'm almost afraid to contact them at this point because I don't want to end up in court over it. I don’t want to return the vehicle either because my credit is bad now and I won’t be able to help my son get a vehicle to drive to work. Any advice given on this would be greatly welcomed. Thanks.