What to do if a broker fraudulently inflated my downpayment on a retail installment contract?

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What to do if a broker fraudulently inflated my downpayment on a retail installment contract?

I purchased a boat through a broker. The retail installment contract was assigned to a credit union. I noticed much later that the broker inflated my downpayment; they “cooked” the numbers so the credit union believes they have more equity ($7K) in the boat than it really exists. My financed amount was still what it should be, which is why I never took much notice of the contract. If I report this fraud information to the credit union, will I then be in some sort of trouble as well? And would I have to automatically make payments to the broker instead if the bank forces them to buy it back?

Asked on September 8, 2011 under Business Law, Texas

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Did you sign any paperwork that shows the inflated numbers by your mortgage broker? If you did, is there a reason why the loan broker inflated the down payment and other numbers concerning the transaction? Also, is there a reason why you did not notice the inflated numbers until after the sale?

I suggest that you first contact your loan broker and ask specific questions for the seemingly inflated information. Perhaps there is a good explanantion for it. If the explanation is not plausible, perhaps you need to sit down with the loan broker and his supervisor to discuss the situation further.

Depending upon the outcome of this meeting, you will be in a position to contact the credit union now holding your loan about the situation if you deem it necessary.

Good luck.

 


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