QUESTION
Can a company refuse to finance a car because of a previous bankruptcy?
Asked on Mar 02nd, 2015 on Bankruptcy - Michigan
More details to this question:
I'm trying to finance a car through a company that I had filed bankruptcy with 16 years ago and they say they can't help me because of this. Can they do that with so much time gone by? They approved the loan and finished everything and then found the old record and are trying to back out. I've had good credit since.
6 ANSWERS
A lender can refuse to finance you for any number of reasons. Unless there is a specific law stating why a lender can?t refuse you (such as race, religion, gender), a lender may deny you credit for any reason or no reason at all. Move on!
Answered on Mar 03rd, 2015 at 12:55 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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While the law protects someone who has filed bankruptcy from a variety of forms of employment and benefit discrimination, it does not force any lender to make a loan it chooses not to. No doubt there are limits on discrimination against people on the basis of race, religion, national origin, etc. But apart from that, the lender has the right to refuse to extend more credit. I do agree that it is unusual for them to look back 16 years, when a bankruptcy is removed from your credit record after ten years. Try another lender, of course. Good Luck.
Answered on Mar 03rd, 2015 at 12:55 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Yes, they can do that. Other than illegal discrimination (race, religion, etc) companies can use whatever they feel is appropriate in making credit decisions. The vast majority of companies look at your current credit rather than old factors, I would suggest that you go to one of these.
Answered on Mar 03rd, 2015 at 12:54 PM
2 Awards
In general, a company can refuse to do business with you. There's no law that says they have to do business with you. However, federal law prohibits them from discriminating against you because of your bankruptcy filing.
Answered on Mar 03rd, 2015 at 10:37 AM
Of course they can. The company have every right not to give you a second chance. There is no law that says a lender must approve you for a loan.
Answered on Mar 03rd, 2015 at 10:35 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Generally yes, making a loan is a contract and is a voluntary contractual relationship which must be assented to by both parties. It is only if you are denied for an prohibited reason, such as discrimination that a refusal to deal becomes illegal.
Answered on Mar 03rd, 2015 at 10:34 AM