I’m in California. I recently financed a car to terms I like, and already paid the first months payment. I received mail informing me that a credit union is unable to give me the loan terms I requested.
Before signing the offer, they told me that my financing terms had been approved.
I gave my old vehicle in as a trade in and as the down payment.
Has this happened to anyone? Is this common? Am I being scammed? I bought this car from an official dealership. What are my options here?
Sidenote: They made multiple typos when typing the information I wrote down when filling the application. At the dealership, I made them correct all the info. However, the mail still has typos in my name and address, the same ones I made them correct. Is this a potential cause?
Edit: The letter is from the dealership, not a credit union. Also, the letters I signed did not have a specific bank attached to them.
Car loan rejected 2 months after getting the car
byu/NoReception9684 inpersonalfinance
Posted by NoReception9684
8 Comments
This is one of those cases you need to pull up your signed loan documents and reach out to the lein holder directly. Make sure to have your loan #.
Have you called the bank and actually asked them?
Does the letter say “notice of adverse action”? I’d be willing to bet that they submitted you to a lender, got a denial, and then resubmitted terms for the approval. Then you get the required notification.
Is it the credit union you financed with? The dealer probably sent out loan applications to many banks. You may just be getting a rejected one now.
Call the credit union and check on the status of your account. I’m willing to bet the dealer submitted your application to the credit union first with all the typos, and it got denied, and then fixed the application and submitted a second time and you were approved.
You need to make sure that the letter you got isn’t just for the first, bad application. I suspect your loan actually is funded and is not closed
If this fell through the car dealer typically would be who would call you, not the bank, because the dealer would want to figure out how to get you financed or to get the car back. And if a loan is going to fall through it’s going to fall through in a week or two not 2 months. If the dealer hadn’t gotten their money in 2 months they would’ve already been hounding you
You have signed documents showing that your loan was approved, they can’t just “un-approve” it.
You *do* have signed documents showing that the load was approved, right?
Is the credit union in the letter the same as the credit union you’re making payments to?
Most likely you received a letter called an adverse action notice which is required when an application is declined for *any* reason. As mentioned above even if an application is initially declined because of a typo, that letter will go out.
My gut feeling is that you’re fine, because the process would entail much more than just a simple letter if your loan truly got rejected well after the fact.
This happened to me. Paid downpayment, signed all docs (approval letter from Chase) etc. Set up account, paid the next month and then right before month 2 was due Chase sends me a letter saying loan was NOT approved.
My ass it wasn’t. You’ve taken my money for one payment already!
Called them up and he was like “yeah, the loan wasn’t approved but I see your signed agreement here and your payment so I guess you’re fine!”
Dunno what the dealer did to get this “approval” and loan documents finalized by their finance bros but it worked!
Dealerships have to send you a 10 day letter if they can’t get you financed (within 10 days of the contract being signed )… If they didn’t send you a letter within 10 days, they own the loan and are now the finance company. Call Louie liberty and he’ll figure it out for you real quick. (In California)