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  1. #1
    Join Date
    Jan 2019
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    1

    Default Can a Car Dealer Report a Car Stolen if the Down Payment Check Bounced

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

    In California we purchased a vehicle from a major dealer with $5K down in a personal check. The check bounced. The car was still financed. We received the welcome package from the financing company and as far as they are concerned everything is ok. At the same time we received a letter from the dealer stating that they will repossess the vehicle. But they did not repossess it until now. We drove the car home 2 months ago. We received the new registration from DMV, the car is registered under our name. We suspect that the financing company does not even know about the bounced check.
    We believe that the dealer received $22K from the financing company.
    Can the dealer report the car stolen?
    Will LAPD honor the dealer's request and report the car as stolen?
    If we drive a car that is registered under our name, and we get pulled over because it was reported stolen, will we be arrested?

  2. #2
    Join Date
    Mar 2013
    Posts
    16,760

    Default Re: Can a Car Dealer Report a Car Stolen if the Down Payment Check Bounced

    Quote Quoting arp
    View Post

    Can the dealer report the car stolen? Will LAPD honor the dealer's request and report the car as stolen?
    You mean can he pick up the phone, call the police, and say "This car was stolen." Of course he can. But if he gives the police the true details, they will probably just tell him it's a civil matter. Although, bouncing the check could be a criminal offense and the authorities could prosecute you for it.

  3. #3
    Join Date
    Oct 2006
    Posts
    15,194

    Default Re: Can a Car Dealer Report a Car Stolen if the Down Payment Check Bounced

    If it has been two months, why haven't you made good the $5000.00? Why is it still unpaid?

  4. #4
    Join Date
    Jan 2006
    Posts
    38,367

    Default Re: Can a Car Dealer Report a Car Stolen if the Down Payment Check Bounced

    If you knew the check was bad, it is a criminal offense. Since it’s over $950 it can be charged as a felony.

    The law also inckudes this section;

    c) Where the check, draft, or order is protested on the ground of insufficiency of funds or credit, the notice of protest shall be admissible as proof of presentation, nonpayment, and protest and shall be presumptive evidence of knowledge of insufficiency of funds or credit with the bank or depositary, person, firm, or corporation.


    that means if you don’t make good on the check, that is proof of knowledge it is a bad check.


    So, by not paying the check once notified of it, you made it a criminal issue.

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