hello my name is ebony I previously went to purchase the car at LaFontaine on the 17th of February 3 weeks prior to me getting the vehicle I receive a phone call from them stating that the contract didn't go through and that I needed to come back up to refill out a contract now they're telling me that they can report the car stolen and I won't have a vehicle anymore
Dealers like to call this practice "spot delivery" but, consumer attorneys call this practice "the yo-yo," and it is illegal. It is called the "yo-yo," because unscrupulous dealers will allow a customer to sign a finance contract and take delivery, with the idea being that if the dealer cannot assign the contract to the finance company, the dealer will simply reel the customer back in to sign a new deal, often on terms that are more onerous for the customer. I'm assuming for this answer that you did nothing wrong (i.e., you did not lie on your credit application). Assuming that to be the case, the law in Michigan is that once you sign the contract and take delivery, the dealer MUST honor the contract as signed. Here is a link to the Secretary of State's Dealer Manual -- note Section 3-3.4, which explains that if the finance contract is rejected, it is the dealer's responsibility to offer financing under the same terms as spelled out in the contract: https://www.michigan.gov/documents/sos/Dealer_Manual_Chapter_3_186042_7.pdf
There are several consumer protection statutes that apply to this situation, including the Equal Credit Opportunity Act, which allows not only your actual damages and attorney fees but, also, punitive damages up to $10,000.00. If the dealer is actually fool hardy enough to report the vehicle as stolen and you get arrested or charged as a result (or the car gets impounded), you would probably be entitled to very substantial damages on top of what the various consumer statutes provide. You should talk with a consumer attorney IMMEDIATELY. In the meantime, here are some general steps that you may want to consider until you can talk with an attorney and get specific advice tailored to your particular situation. Again, these steps assume that you did nothing wrong in the application process:
1. Remove EVERYTHING from the vehicle except the license plates; that would especially include any paperwork from the transaction (you'll need that paperwork as evidence in your case). Do not leave anything in the vehicle until this matter is resolved. Even though the dealer knows better, the dealer may still try to repo the vehicle or report it stolen.
2. Contact the dealer and advise them of the information in the Secretary of State Manual (yes, the dealer knows this but, obviously the dealer is counting on you not knowing your rights; reminding the dealer may help resolve this matter to your satisfaction).
3. Make your payments under the contract directly to the dealer on time (even a day late is a technical default and may get the dealer off the hook -- don't let that happen). Use a check, money order or credit card so that you have a paper trail to prove that the payments were made and made on time. And DON'T drive the subject car to the dealer -- they may try to block the vehicle in and prevent you from leaving -- get a friend or relative to drive you or take Uber if you have to!
4. Inform the dealer in writing that you will be making the payments under the contract as signed, and that the dealer does NOT have your permission to run any more credit checks (continuing to run credit checks will drastically lower your credit score).
5. If you can keep the vehicle in a secure location, do so. Breaking into a garage or other secure area is a breach of the peace and is illegal.
6. Get in touch with a consumer protection attorney right away!! Even though you could recover a hefty settlement if you get arrested, you do not want that hassle and embarrassment, and you certainly do not want an arrest on your record, even if the charges do get dropped.
