Oscoda, MI asked in Banking for Michigan

Q: HI, I was approved for a loan for 20 thousand at 4% interest. I shouldn't of been approved. Questions in details!

on paper I knowingly could not afford this loan.

I had just started a job for 3 weeks ago at that point.

I made $9.50 an hour.

and my credit score didn't exist.

after reviewing my contract with the salesman he whited out my employment dates and put 6 months.

and I made the payments for about 4-6 months then i finally admitted I could not do the payments, I voluntarily turned the jeep back in.

months later they sold the jeep for 11 thousand.

collections is coming after me for 9 thousand

I'm wondering what it is I can do.

the loan manager of the bank that approved me lost her job over this from what I have been told because of similar issues with other people.

this killed my credit. and I'm only 21.

I know i shouldn't of gotten the loan, but isn't that what the loan managers job is, to not approve anxious kids? because I regret all of it.

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1 Lawyer Answer
Brent T. Geers
Brent T. Geers
  • Grand Rapids, MI
  • Licensed in Michigan

A: You present an interesting take on an age-old dilemma. While the loan manager may be held accountable to the bank or dealership for approving a bad loan (in this case, allegedly losing her job), you are and will be accountable for everything you sign as an adult - including this loan agreement. Otherwise, everyone would say "hey, you shouldn't have given me the loan anyway" when they default.

Best thing you can probably do at this point is to work through an attorney or try negotiating a settlement with the collection agency. That $9,000 won't go away by itself, but probably can be negotiated down.

1 user found this answer helpful

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