QUESTION
can an autoloan contract already signed be transferred to another fincial institute?
Asked on May 20th, 2014 on Breach of Contract - Kansas
More details to this question:
I signed i contract with the dealership for new car, couple days later i get a call from the finiance department of the dealership saying a different financial institute is going to take the loan. This happened roughly a month ago, i had a trade in vehicle, that i had a loan through still. i as of today was charged a monthly payment for my old vehicle, that i no longer have, the dealership has the vehicle.
1 ANSWER
Loans are generally freely transferrable, thus unless your loan agreement expressly states that the lender can't assign it, the lender can transfer it to whomever it wishes.
Similarly, when most people trade in a car on which they still owe payments, the dealership generally assumes responsibility for making payments on the existing loan (although the original borrower would remain on the hook to the lender if the dealership doesn't pay.) Did the dealership agree to make payments on your existing loan? If so, it has breached your contract by failing to do so.
Answered on May 20th, 2014 at 2:46 PM