New Paperwork Doesn't Fly

How would you like to sign a paper that says you defaulted on your car loan, before you even made a single payment? How is that even possible you might ask? Well, you aren’t alone as there are others who are questioning the same thing.

One gentleman, Deepak Kulkarni, found out the hard way that banks are asking their patrons to sign them when he was asked to do so. Kulkarni is a senior executive in a communications firm and had gone into the dealership that he passed every day on his way to work.

After choosing the car he wanted, he sat down to sign the car loan paperwork. However, the banks wanted him to sign a surrender letter that said that he had defaulted on his car loan and was allowing them to seize the vehicle.

Kulkarni refused to sign the paper and was told that they could not process his car loan without it. The selling agent said that no one else had a problem with it so he shouldn’t either. However, experts say that most people sign so many papers when getting a car loan that they don’t realize what they have signed.

The idea behind the paper is that if someone does default on their auto loan, the bank will fill in the information regarding last payment, etc. and then can come take the car. However, as the banks are not giving you a copy of the letter in with your paperwork, thus violating the guidelines that say you have to have a copy of all paperwork you signed in your car loan packet.





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