Dealer canceled, later funded, agreed to unwind, took car back, relisted. Loan still active
Located in California.
I bought a car on 4/2 and was told I was fully approved. After that, they said the bank still needed my pay stubs. I then received a cancellation notice stating they couldn’t get me financed. When I asked about it, they told me to ignore it and that everything was fine. I called the bank and was told they were still waiting on income verification. On 4/15, after not hearing from the dealership, I emailed them that I was not moving forward and would be returning the car per their notice. Then they pushed the deal through and it was funded on 4/17. They later agreed to undo the deal, and I returned the car about a week ago. They have the car listed it for sale again. An underwriter from the bank called me and said the loan is still active. The dealer tried to “flat cancel” the deal, which isn’t possible on a used vehicle, and that they would need to pay off the loan balance. I also called the DMV and was told the car is not in my name. I’ve reached out to the dealership and have not received a response. Do they have to pay off the loan since they took the car back? How long do they have to fix this? Can I take the car back if they don’t pay it off?