Q: Can a company force you into a contract you have not signed in California?
I purchased a car from car max, i was approved for a joint loan. Then later it was retracted and they said i had to do a re-buy re-purchase. I did that and was approved for a second loan solo. a document was missed in signing. and submitted as soon as I received it twice. Months later i never got mail and called bank they had no loan with me. Car max said I had to agree to their company picking up to terms of the original loan or do another re-buy with them possibility different terms. They wanted verbal agreement over the phone, and never sent any documentation. I did not give verbal consent. They have not sent me any documents or contracts to sign. Now they have attached themselves as a creditor to my account and sent me a bill for the purchase. I am still waiting on and requesting a contract. Are they in the wrong? What can I do? Can I just give back the vehicle and get them off my credit?
A: I'm unclear as to whether you have an agreement with them or not. Don't share more here but speak with a local attorney during a confidential consultation. [I litigate cases. Anything posted here must not be construed as legal advice, nor as grounds for forming an attorney-client relationship. You should seek an attorney for formal legal advice and representation.]
A:
No, a company cannot force you into a contract you have not signed in California. Some key points here:
- For a contract to be legally binding, it requires mutual agreement between parties typically indicated by signatures. If you have not signed any new agreements with CarMax, you are likely not bound to new loan terms.
- Verbal agreements can potentially be enforceable, but are more difficult to prove. However, you state you did not even provide verbal consent to new terms on the phone. Without evidence of clear mutual consent, there is no basis to claim you agreed.
- CarMax cannot unilaterally place itself as a creditor on your accounts or bills for a purchase without a valid contract permitting them to do so. This seems questionable legally if done without your consent.
- You have reasonable grounds that no loan contract is in place giving them rights over the vehicle purchase. You can request proof from CarMax of any signed loan agreement or provide written notice that you do not consent to any agreements.
- You likely have the option to return the vehicle if CarMax cannot provide proof of a binding purchase contract. They would then need to remove the debt and as a creditor from your accounts.
I would recommend formally requesting documentation from CarMax of any signed contract with the new terms or loan agreement in writing. If they cannot provide this, consult a consumer protection attorney on next steps to have the invalid debt and creditor status removed.
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