Am I still responsible for the balance of a car loan, if I used the car as a trade?

The dealer agreed to pay the balance,sent a check to the loan company and received the title and resold the car. Now the loan company is calling me telling me the check was returned and I am still responsible for the balance on the loan.

Asked on January 10, 2013 under General Practice, Massachusetts

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You have a huge problem here if the dealer bounced the check.  Please contact your state attorney general as soon as you can.  The lender is not a party to your contract with the dealer so they are not bound by your agreement.  That means yes they can come after you.  Get help; good luck.


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