Rewritten Contract Backdating Fraud in California Auto Sales

Rewritten contract and backdating fraud happens when a dealership has you sign a new retail installment sale contract or lease, but dates that “new” contract back to the date of the original deal. This isn’t just sloppy paperwork – it can create hidden finance charges, the wrong APR, and misleading disclosures about what you’re really paying for the vehicle under California law.

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What Is a Rewritten or Backdated Car Contract?

A “rewritten contract” usually happens when the dealer tells you that the original deal “didn’t go through” or “the bank didn’t like it,” and insists that you come back to sign a second contract. In a backdating scheme, the dealer then puts the old date from the first contract on the new one – even though you signed days (or weeks) later.

This is especially common in spot delivery / Yo-Yo financing situations, where the dealer lets you drive off believing you are fully approved, only to call you back later and change the structure of your agreement.

How Backdating Creates Hidden Finance Charges and a Wrong APR

Under California’s Automobile Sales Finance Act and federal Truth in Lending rules, your contract must accurately disclose your:

• Annual Percentage Rate (APR)
• Finance charges and total amount financed
• Payment schedule and when interest begins to run

When a dealer backdates your rewritten contract, it can:

• Add hidden “per diem” finance charges for days before you actually signed the new contract or before the lender really accepted the deal.
• Make the APR inaccurate by spreading the finance charge over a longer “pretend” loan term than you actually agreed to.
• Mislead you about the total cost of credit – the paperwork makes it look like you’re paying less in interest than you really are.
• Hide changes in the deal, such as a higher price, added products (GAP, service contracts, accessories), or a different down payment or trade-in treatment.

Using any date other than the actual date you sign the new contract can violate consumer protection laws and may entitle you to remedies, including monetary damages or, in some cases, unwinding (rescinding) the contract.

“The Dealer Said It Was Just for Convenience”

Dealers often try to excuse backdating by saying things like:

• “We have to match the date the bank approved the deal.”
• “It’s just for our paperwork – it doesn’t change anything for you.”
• “We can’t change the date because it’s the same deal as before.”

Those explanations don’t fix the problem. The numbers on your contract must match reality. Backdating can:

• Shift undisclosed finance charges onto you.
• Cause the disclosed APR to be wrong.
• Mask a Yo-Yo financing scheme where the dealer changed the deal to make more profit.

Even if you signed an “Acknowledgment of Rewritten Contract,” the dealer cannot use that to excuse illegal backdating or misleading finance disclosures.

Common Red Flags of Rewritten Contract / Backdating Fraud

You may be dealing with rewritten contract or backdating fraud in California if:

• You signed an original contract, took the car home, and were later called back to “re-sign” or “fix” the paperwork.
• The second contract is dated the same day as the first contract, even though you signed it on a later date.
• Your payment amount, APR, or term changed when you signed the second contract.
• The dealer says, “Nothing really changed,” but the new contract shows different fees, add-ons, or a different amount financed.
• You were threatened with losing the car or harming your credit if you refused to sign the new paperwork.

These kinds of practices can support claims for California auto sales and finance fraud, and may also overlap with other issues such as:

• Undisclosed deferred down payments or “due later” amounts.
• Payment packing or hidden add-ons (GAP, service contracts, accessories).
• Wrong payoff or trade-in misrepresentation.

For more on these patterns, see our California auto dealer fraud resources: [Link to /practice-areas/california-auto-fraud].

Is Contract Backdating Always Illegal?

Dealers sometimes claim that backdating is harmless or “industry standard.” But if backdating causes:

• A wrong APR,
• Extra, undisclosed finance charges, or
• Misleading disclosures about when the loan starts or what you’ll pay,

it can violate the disclosure rules that protect California car buyers. You do not have to prove the dealer meant to trick you; the focus is on whether the disclosures are accurate and complete.

In some situations, a backdated rewritten contract can justify:

• Recovery of statutory damages and/or actual financial losses.
• Rescission (unwinding) of the contract and a refund of what you paid, depending on the facts.
• Additional penalties or attorney’s fees under California law.

What to Do If a Dealer Backdated Your Contract

If you suspect your California car contract was rewritten or backdated, try to gather:

• Copies of both contracts (the original and the rewritten version).
• Any “Acknowledgment of Rewritten Contract” or similar forms.
• Texts, emails, or notes about what the dealer told you when they called you back in.
• Any finance or lender correspondence tied to the timing of the deal.

Then, have an experienced California auto sales and finance fraud lawyer review your documents. Often, the fraud is in the fine print and in the dates and numbers the dealer was hoping you wouldn’t notice.

Free Review of a Rewritten or Backdated Car Contract in California

Our California Lemon Law & auto fraud firm helps car buyers challenge rewritten and backdated contracts that cause hidden finance charges, wrong APRs, or misleading disclosures. We can review your paperwork, explain your options, and help you decide on next steps.

If what you signed, were charged, or were promised does not match your rewritten or backdated contract, call (888) 536-6628 or start your FREE Case Review and we’ll review your contracts and explain your options under California law.

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