What type of charges can a car dealer file if they received a worthless check for a down payment on a car?
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What type of charges can a car dealer file if they received a worthless check for a down payment on a car?
Asked on October 6, 2011 under Bankruptcy Law, Florida
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If the car left the lot based upon the check that failed to clear due to insufficient funds, the car dealership's theory of liability possibly could be for fraud, breach of contact and common counts.
Howeer, if the vehicle did not leave the lot and the check for the down payment failed to clear, then there really is no cause of action yet against the maker of the check unless there is an actual contract to purchase the car and the buyer refuses to go ahead and close the sale with actual money.
If you are the make of the check that failed to clear due to insufficient funds and you actually signed a written agreement to buy the car, you are in a difficult position because you are contractually bound to purchase the car. However, if you simply placed a deposit for the vehicle and signed no contract to purchase it, you are not contractually bound to buy it.
Good luck.
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