This is a serious situation that touches on both consumer credit law and fraud. While the agreement might exist on paper, it is likely voidable and potentially illegal in the eyes of the regulator. Under the Consumer Credit Act 1974, a finance agreement must be based on an accurate assessment of affordability. If the dealer — acting as the credit broker — deliberately provided false info (such as inflating your income or hiding debts), the contract is based on a fundamental misrepresentation.

If you can prove the dealer falsified the data, you can argue the agreement should be set aside (rescinded). The lender is technically responsible for the actions of the dealer when they act as their agent for the application. Deliberately inputting false information to obtain credit is Fraud by Misrepresentation under the Fraud Act 2006.

The Dealer has committed an offence to gain commission. If the customer knew the information was wrong and signed anyway, you could also be held liable for application fraud. However, if the dealer did this without your knowledge or "corrected" your true figures behind the scenes, you are the victim.

The Financial Conduct Authority (FCA) has strict rules on responsible lending. If a dealer bypasses these checks by lying, they have stripped you of your legal protection. The Financial Ombudsman Service (FOS) takes a very dim view of this and often orders the finance company to cancel the agreement, take the car back and refund your deposit/payments if the loan is clearly unaffordable.

A deliberate misrepresentation of a customer's financial situation in respect of a finance application could be considered fraud. We would suggest contacting Trading Standards and/or the Financial Services Ombudsman.