traded in vehicle. financing withdrawn

my daughter & her fiance traded in their dodge dakota for a used nissan titan. they were financed thru the dealership & bank of america. signed all the paperwork & took the car into their possession. financing was approved on the spot with no cosigner needed. they are 20 & 23 by the way. this all took place on Dec 13. On Jan 8, they recieved a letter from B of A saying sorry they could not finance them. This is after they had changed the insurance, gotten the registration switched & driven for a frickin month. Now his credit union that had the loan on the dakota has sent him a letter stating that his loan is late. is there anything we can do. shouldnt they reimburse them for the insurance & registration, etc. what ya think?

Since they were driving the new one, they actually used the insurance they were paying for it and perhaps they weren't covered on their old one. The fact that the financing didn't go through leaves the dealer looking pretty bad. They usually get a bit of money for writing these loans. Strange that it took so long for BofA to get back to them. Wonder if they notified the dealer. I'd say the dealership should be put into hot water with the local BBB for writing loans without any documentation from the lender. They need to talk to a local lawyer in a free appointment to discuss the problem after they find out whether their old car is still around. The dealer should pay for the registration if they are going to take the car back and are processing loans in an unregulated fashion. Since they had your car and maybe still do, the kids should have notified their insurance company of the change by now. The kids will have to come up with the payments quickly if the car is still around and probably haven't had to pay yet on the new one... net probably Zero. Just tell them to get everything back where it belongs... but beware... most dealers don't hold onto cars for long. If the dealer has not been notified any more timely than you, the car may have already been sent to the auction. Move quickly to verify it is still there.... else they will owe you for the car... BLUE BOOK... regardless of what they got for it if it is not still there. But ask the attorney what the next step is. Some dealerships have been sued for doing this kind of shady business.