Car Dealership Altered the Financial Paperwork, Can I Get Out of the Deal?

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Many auto dealers file paperwork when someone comes in for a new deal. On the files that are recorded, there are certain fields that detail the financial situation of the client.

Some of these persons mark estimated income, and others fudge the numbers so that the company is able to self-finance or ensure that car financing is available for payments that are reasonable. They may do this to ensure a deal is possible and that the amounts owed each month for the vehicle are within the range the person specified. However, unless specifically in the fine print, getting out of these contracts is difficult to do.

Signatures on documents constitute a contractual agreement. Unless the dealership has been committing fraud or other crimes, the client is usually bound by the terms of the contract he or she signed with the auto dealer. This means the company has worked within certain state and federal guidelines to avoid taking advantage of customers within the car industry. If fraud was committed, this means that the business was party to unfair practices or deception that harmed the client. Altering number for income fields on a file may not be included in these examples. It may require the use of a lawyer to truly discern if a crime was committed.

Altering the Paperwork

Credit application fraud is common among car dealerships that alter the financial paperwork of clients obtaining cars. Unfortunately, this often leads to the persons not able to make payments and getting loans that cannot be afforded. When the employees submit invalid or incorrect numbers to auto financing companies, the problem falls in the hands of the person that purchased the vehicle. However, when the information has been changed and then submitted electronically to the other company, this is when fraud is committed by the auto dealership. This may be through false income data, and another may be through what expenses the individual has. This means his or her monthly bills may be changed in the system.

Unfortunately, the financing company is unaware of these alterations to the paperwork. It is believed that the person has the money for all bills and the car payment. Other complications arise when the dealership provides incorrect down payment data. This could be through supplying information about thousands being provided when it may only be hundreds. In many of these instances, the credit approval was only given based on false records. This then lead to difficulty in keeping up with a large car payment each month. This may cause the customer to seek legal recourse for the problem.

Breaking the Contract

When the dealership has been caught in fraudulent activity, it may be beneficial for the company to break the contract with the customer. However, there must be enough proof for this to be possible. Many companies are unwilling to stop payments from being provided by customers as they are the primary source of revenue. This may mean the client needs to seek a lawyer to assist with the matter. When facing possible litigation, numerous businesses fold under the pressure quickly. They may be willing to break the contract and relinquish the payments to make the matter go away. However, the person is still out what he or she has already paid.

It may be possible to communicate with the car company directly to have the contract broken by explaining that the customer will go to the financing company and detail the issue with fraudulent financial paperwork information supplied to the employees. When there is a worry that illegal or unethical practices were completed, it is possible that management may find the customer too much to deal with and release him or her from the agreement. However, these situations are not common. Many customers must seek the assistance of a lawyer so that the company breaks the contract with no other recourse.

Altered Paperwork Legal Help

Because altering the financial records of an individual is considered fraud, this is a crime that could be reported to state or federal officials. This then could lead to other legal action being taken against the company as they usually complete these activities with multiple customers. Seeking the advice and help of a lawyer is imperative so that the contract may be broken if possible. However, when there is evidence that fraud occurred, the employees or management are usually more willing to make a deal with the lawyer and customer.


Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer.

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