Lompoc, CA asked in Consumer Law and Products Liability for California

Q: Is it legal for retailer to not sell you a product after requiring your to be approved for a loan?

A retailer is selling a product from a third party that requires a buyer to be approved for a loan. The buyer applies, and is approved for the loan. After being approved for the loan, the retailer informs the buyer that theyre sold out of the product. The buyer now has an established loan/line of credit with a financial institution, which was solely made to pay for this specific product, but nothing to show for it. Whats the legality of this, and can the retailer, or the company who makes the product, be held responsible to make amends for this? (item: Xbox All Access/Gamestop)

1 Lawyer Answer
Yelena Gurevich
Yelena Gurevich
  • Consumer Law Lawyer
  • Studio City, CA
  • Licensed in California

A: With the facts given, the credit/loan taken out can be paid in full since the funds were not used to purchase the product so there are no damages to the consumer under these circumstances. With no damages, there is no case to pursue.

Gerald Barry Dorfman agrees with this answer

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