Legal Question in Consumer Law in Michigan

Credit limit and income

My son is 20--He was talked in to buying 2 motorcycles from a dealer in Michigan--ordered them over the phone-he was told it was going to be cheaper for him if he got two--verses one--he decieded he was going to get two and let his freind pay him payments for one of them--then he decides to get another one and let his friend pay for the one he had--he ordered another one and it was sent the next day.--How can a person who makes 7.50 a hour get 40,000.00 worth of credit (dept).--I called the financial institution --after he got the first two bikes ---they are related to the motorcycle buiness --and ask them why they would do that--they said his credit wasnt bad so they can do that.-- by the way--with not any security on the loans--3 loans.--I cant even beleive they would send 3 motorcycles with not knowing if he had insurance and they didnt have temp plates when they came. he got the 2 bikes on March 31--didnt get insurance on them until April 4----I just want to know if any of this is legal.--thank you--


Asked on 6/18/03, 1:56 am

1 Answer from Attorneys
Regina Mullen Legal Data Services, PLC

Re: Credit limit and income

At 20, your son is old enough to know what he can and cannot afford. The finance company is only interested in getting his money, he is supposed to look out for himself.

I don't see how someone would buy into buying two motorcycles to get one cheaper. That's ridiculous,-- these aren't bags of chips we're talking about here!

The contracts are not only legal, but chances are they are binding. If he doesn't get the money from his friend and pay them off on time, then his credit which was fine, will be ruined for years to come.

Further, I suggest he get his friend to take out a loan himself for the price of the first bike and pay that off right away, because there's no doubt that one of them is going to have second thoughts on $7.50 an hour, and then it'll be a bigger mess than now.

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Answered on 6/18/03, 1:01 pm


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