Question by Superman: Can someone go to jail for lying on a credit application for a car loan?
I know someone who purchased a new car from a dealorship but lied about the ammount of money she was making per month. She is just starting a new job and has not recieved her first check yet. The dealership told her she was approved before seeing her income verification and let her drive home with the car. He later told her that he needed a check stub “for his file” to process everything (even though he had earlier said that she had been approved the loan) and she does not have one to give him. Can she go to jail for this?
Best answer:
Answer by Frank Castle
Yes.
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Yes because above the contract she signed it states that “To the best of my knowledge I answered truthfully.” or something similar. She will most likely lose the car since she probably doesn’t meet the qualifications.
yeah, but its doubtful that it would be carried out. all that will happen is u will have to give the car back. without that paystub the bank will not approve the loan, they want proof of income in order to finance someone.
Lying on a credit application is a violation of federal law, and can result in a prison term of up to 30 years, a $ 1,000,000 fine, or both. It almost definitely also violates the terms of the application, which is a contract between her and the lender. The best thing she can do is return the car immediately and tell the dealer that she changed her mind about the purchase. The dealer may require a payment to offset the wear and tear on the vehicle while it’s been in her possession.
Probably not. Since it’s a new job, she could just clain that she misunderstood the salary, or included the anticipated monies from a new side business that she was going to start.
Technically, lying on a credit application is fraud. If she would make enough to get the car with the false income, but not enough with the actaul incomem this could be fraud.