Legal Question in Credit and Debt Law in California

Bad Finance Contract

I purchased a motorcycle form a dealer in California last March. I got financed by a frm in Southern California. The dealer who I was working with said they could process that transaction even thout they had never worked with them before. I payed approx $1200 as a down payment. After 2 months had passed and had recieved no paperwork from the finacier I called them to find out where to send payments. I was told that they did not have me financed any longer and that the dealer pulled the financing away from them. I called the dealer and was told that they were going to finanace me directly instead. When I told them that I was not comfortable with that I asked what the payoff was so I would just have it taken care of by my credit union they gave me a $4,100 total which was the balance to be payed after 2 years of financing. I attempted to argue with about charging me interest up front and they did not budge. So I did not pay at all. Now a year later they are taking me to small claims court based on a contract that I have with another financial instituion. Isn't that contract already void? Can they change my contract finanacing on their own?

Needing help I have court on Monday morning!!


Asked on 4/11/03, 8:26 pm

1 Answer from Attorneys
Jason Hsu Una Law Corporation

Re: Bad Finance Contract

Your synopsis was a little brief and confusing. However, it sounds like there were two contracts or an assignment of a contract on the financing. You first need to clear up how the financing was "pulled away" by the dealer. The main issue then is how the dealer became the financier when you chose another firm. Second, you should review the terms of the agreement with that financing company you went to originally.

The information provided to you is of a general nature. We hope this information has been helpful to you, but you should always obtain competent legal counsel who is familiar with your specific legal issues to determine the best course of action. If we can help you in the future with anything, please feel free to contact or email us at www.unalaw.com

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Answered on 4/11/03, 9:25 pm


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