QUESTION
Is it legal for a busniess to take a loan out in my name, saying I signed paperwork to do so?
Asked on Mar 15th, 2018 on Breach of Contract - Colorado
More details to this question:
My husband and I signed a contract for a food service. While the man was at the house selling and giving us paperwork, first he told us there was no third party involved (turns out there is a bank in which a loan has now been taken out in our name). Second, the man (John) did not tell myself or my husband that we were signing any document for our credit to be run, and a loan be taken out.
1 ANSWER
it is of course not legal for anyone to take out a loan in your name that you had not consented to, or to misrepresent to the bank that you had consented. However, you are deemed to have read and undersdtood anything you sign. If you, in fact, signed such a consent, you will have a hard time getting out of it and, even if you succeed in negating your contract with the food service due to fraud (very unlikely in NY but Texas law may be more sympathetic), you will still be obligated to the bank, unless the bank had reason to know of the fraud. You may be able to get the food company to pay you back for any losses you suffer on the bank loan, but if it can't pay, you will still be on the hook.
Answered on Mar 15th, 2018 at 3:21 PM