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Retail installment contract and financing? Legal rights??

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MLJE

Junior Member
I purchased a vehicle on 12/30 and signed a "Retail Installment Contract and Security Agreement" with the dealer and have been driving it since.

Now 2 weeks later it seems the financing has unraveled. Capital One Auto will not accept anything other than bank statements and since I have an online business, most of my $ stays in my paypal account. They will not accept tax statements or 1099 at this point. Only the bank statement since I'm self employed. There is no question that the income exists. I have claimed it on taxes/schedule C for a couple years now. They just won't do it per their policy. I get their side of it. I knew my income wasn't typical and explained everything to thr dealer. They said it wasn't a problem to use my PayPal statements and they accepted them and listed Capital One as the "assignment" on the bottom of the RISC.

So the issue now is the dealer wants me to secure other financing (which will be a much higher interest rate) or return the vehicle.

What my issue is... is that this appeared to be a complete deal legally. I was under the impression that financing was locked in and I would never have to see the dealer again.

*** I have absolutely scrutinized all the documents I have and there is NO signed conditional delivery, NO signed spot delivery, NO signed additional contracts of any kind that specify afinancing contingency. In fact- there is a section about "conditional delivery" on the RISC and it says "if checked, you agree that financing is conditional... Blah blah blah". And it's NOT checked and even says "N/A" *** they didn't discuss with me in any detail that this sale might be conditional.

So finally to my question- are they legally bound by this contract to offer me the APR it lists and take my payments? Or is there something I'm missing?

I have already sold our 2nd vehicle so returning this leaves me in an extremely bad spot. Not sure how to proceed. If I had signed a conditional financing agreement I fully understand I would have to get other financing or return the vehicle. I get that. But there's no such thing.
 


MLJE

Junior Member
Also want to add. The APr was finalized, monthly payment and due date, I had to obtain insurance on the vehicle, they gave me a TILA document that lists APR and payments, and a title affidavit.
 

OHRoadwarrior

Senior Member
Based on the situation you presented, it appears the dealer will be forced to service the loan instead of Capital One. If they ask you to come in and talk, do not drive that car onto the lot.
 

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