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  1. #1
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    Default What Happens if You Get a Car Loan but Use the Money for Something Else

    My question involves a consumer law issue in the State of: Georgia

    What happens if you receive a car loan but do not use the money to buy a car?

  2. #2
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    Default Re: What Happens if You Receive a Car Loan but Not Use the Money to Buy a Car

    Depending on the contract it could be fraud or conversion. Fraud and conversion come in both civil and criminal flavors. No idea what is applicable given the lack of information.

  3. #3
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    Default Re: What Happens if You Get a Car Loan but Use the Money for Something Else

    Quote Quoting bgoldinc
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    My question involves a consumer law issue in the State of: Georgia

    What happens if you receive a car loan but do not use the money to buy a car?
    It should actually be impossible to do. The lender is either going to pay the car seller/dealer directly or will give you a check made out to the car seller/dealer. The bank isn't going to give the money to you so that you have the opportunity to spend it on something else.

  4. #4
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    Default Re: What Happens if You Get a Car Loan but Use the Money for Something Else

    Specifically, they aren't going to fork over the money unless they get recorded as the lienholder on the title at the same time (and they verify they are in first position).

  5. #5
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    Default Re: What Happens if You Get a Car Loan but Use the Money for Something Else

    Quote Quoting llworking
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    It should actually be impossible to do. The lender is either going to pay the car seller/dealer directly or will give you a check made out to the car seller/dealer. The bank isn't going to give the money to you so that you have the opportunity to spend it on something else.
    I have had two blank checks from the bank for issing to any dealer that I would like. So you can get the money issued to you.
    I'm not a lawyer, but I did stay at a Holiday Inn Express last night.......

  6. #6
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    Default Re: What Happens if You Get a Car Loan but Use the Money for Something Else

    Quote Quoting Who'sThatGuy
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    I have had two blank checks from the bank for issing to any dealer that I would like. So you can get the money issued to you.
    You must have a special relationship with your bank, because I have never seen a bank do that, ever.

  7. #7
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    Default Re: What Happens if You Get a Car Loan but Use the Money for Something Else

    Quote Quoting Who'sThatGuy
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    I have had two blank checks from the bank for issing to any dealer that I would like. So you can get the money issued to you.
    I suspect what you have there is a personal loan that is convertable to a car loan upon recording of the security. Read your agreement with the bank. I suspect that if you cash the check and do not present them a title, it gets to be a very high interest rate personal loan.

  8. #8
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    Default Re: What Happens if You Get a Car Loan but Use the Money for Something Else

    Quote Quoting llworking
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    You must have a special relationship with your bank, because I have never seen a bank do that, ever.
    I bought my last 2 cars with blank checks that I had to write out.
    If you wanted babies all to yourself, you should have created them by yourself. Until you do that, children have the right to BOTH parents, especially since you found them suitable to procreate with.

  9. #9
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    Default Re: What Happens if You Get a Car Loan but Use the Money for Something Else

    Quote Quoting flyingron
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    I suspect what you have there is a personal loan that is convertable to a car loan upon recording of the security. Read your agreement with the bank. I suspect that if you cash the check and do not present them a title, it gets to be a very high interest rate personal loan.
    I'm not sure. I told them I wanted to buy a car, they asked me how much I needed and they gave me the check.
    I'm not a lawyer, but I did stay at a Holiday Inn Express last night.......

  10. #10
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    Default Re: What Happens if You Get a Car Loan but Use the Money for Something Else

    Quote Quoting Who'sThatGuy
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    I'm not sure. I told them I wanted to buy a car, they asked me how much I needed and they gave me the check.
    Did they writen the loan as a car loan and require a lien on the title or was it simply a personal loan?

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