When you finance your purchase of a car, you expect that the information you provide to the car dealer about your income and financial situation will be accurately reflected on the paperwork the dealer completes on your behalf. Unfortunately, some car dealerships engage in fraudulent practices that can seriously impact your credit and financial well-being. One such practice is auto loan application fraud, a deceptive tactic used by dishonest dealers to increase the chances that your loan will be approved. If you believe you’re a victim, contact the seasoned New Mexico car dealership fraud lawyers at Feferman, Warren & Mattison for a free consultation today.
Auto loan application fraud happens when a car dealer intentionally falsifies information on a credit or loan application, without the buyer’s knowledge. One of the most common examples is inflating a customer’s income to make them appear more financially stable to the lender. This misrepresentation is often done electronically, making it hard for buyers to catch at the time of purchase. A dealership might also coach you into exaggerating your income or job details or may simply enter false information themselves that you do not catch when signing. This kind of fraud is illegal under the New Mexico Unfair Practices Act.
If a dealership submitted a credit application in your name with information you didn’t provide, you may have a valid claim for auto fraud. And you are not alone.
At first, you might not notice anything is wrong. The loan gets approved, and you drive off the lot in your new car. But a few months later, reality sets in. Because your loan was based on falsified income, your monthly payments may be to high for you to afford. This can lead to missed payments, mounting late fees, and even repossession, all of which can devastate your credit score.
Auto loan application fraud can also limit your ability to refinance or secure future loans. Some consumers face aggressive collection efforts or lawsuits when they default on a loan that was never fair or affordable to begin with.
And here’s the worst part: if the fraud is discovered by the lender, they may accuse you of participating in the false statements, even if you were completely unaware.
If you believe a car dealership misrepresented your income or job details on your credit application, do not wait to take action. Start by reviewing a copy of the credit application submitted to the lender. You can request this directly from the lender. Look for any income figures, job titles, or other details that don’t match what you actually provided.
Next, contact an attorney who handles auto fraud cases. At Feferman, Warren & Mattison, we have decades of experience protecting New Mexico consumers from deceptive business practices, including auto loan application fraud. We can help you determine if your rights were violated and guide you through the legal steps to challenge the fraud. This may include seeking monetary damages, and getting your credit report issues addressed.
Auto loan application fraud can have very real consequences. If you’re dealing with a car loan that doesn’t reflect your true financial situation, don’t assume you’re stuck. Get informed, take action, and let the team at Feferman, Warren & Mattison help you protect your rights. Contact our team of New Mexico consumer lawyers today for a free initial consultation.
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