[TX] What legal options do I have if a car dealership falsified my credit information to approve an auto loan I can’t afford?

Lexi, Chatbot

I'm sorry to hear that you're dealing with this situation; it can be really frustrating. Can you tell me when this incident occurred?

Lexi, Chatbot

Have you already taken any steps to address the issue with the dealership or your credit report?

Lexi, Chatbot

Is there anything else the consumer protection lawyer should know before I connect you? Rest assured they'll be able to help with your credit application issue.

Lexi, Chatbot

Thank you for providing the details. Given the situation, it is important to take the following steps:

1. Document Everything: Collect all relevant documents, including the credit application, loan agreement, and any communication with the dealership.
2. Contact the Lender: Inform the financial institution that provided the loan about the discrepancy.
3. File a Complaint: FTC and your State’s Attorney General.
4. Consider Legal Action: Consult a consumer protection attorney.
5. Review Your Credit Report.
6. Adverse Action Notice if needed.

Gurney P

Welcome and thank you for your questions. I’m @GurneyP.

Have you already signed all the final paperwork and taken possession of the truck, or is the sale still pending?

Gurney P

I see, ok. Where did the dealership transaction take place, as far as city/state?

Gurney P

Thank you for clarifying, That’s a serious situation, and unfortunately, it happens more often than most people realize. When a dealership falsifies your income or other financial information on a credit application, it can amount to loan fraud, consumer fraud, or deceptive trade practices under Texas law. Even though you signed the paperwork, you still have rights if the dealership intentionally misrepresented your financial information to push through an approval. Here’s how this typically breaks down:

1. Misrepresentation or fraud: If the dealer knowingly inflated your income on the credit application, that’s considered a deceptive act under the Texas Deceptive Trade Practices Act (DTPA). You could pursue damages, cancellation of the loan, or restitution. (TX Bus & Com Code § 17.46)
2. False information to a lender: The dealership, not you, is legally responsible if they submitted false data without your consent. It’s important to notify the lender immediately in writing that the information was falsified by the dealer and that you did not authorize the inflated income. (TX Penal Code § 32.32)
3. Loan rescission or renegotiation: Depending on how recent the purchase was (October 28 is still very recent), the lender may freeze or review the account. If they determine the approval was based on fraudulent data, they could unwind the deal or allow you to return the vehicle.

Here’s what I’d recommend you do next:

1. Contact the lender directly and document that you discovered the dealership falsified your income. Request copies of the credit application and underwriting documents.
2. File written complaints with the Texas Attorney General, the Texas Department of Motor Vehicles (DMV), and the Federal Trade Commission (FTC). (15 U.S.C. § 45)
3. Save every email, document, and conversation — they’ll be key if the case becomes legal.

Gurney P

Ok, good plan! Thank you for coming and I'll be more than happy to help with more questions in a new chat one day.