What the dealer did is common practice. An application signed and is submitted to the lender. Even though you may take delivery you do not have a loan agreement until it’s approved 2 or 3 days later. If that loan app is declined and this woman refused to resubmit another application she should have been repossessed.
I might misunderstand, but here’s what it looks like to me: Tina applied to 2 financing companies, selected the offer from one, finished the paperwork, and owned the car. So far, so good, a normal process. But then the dealership submitted a third financing request to a third company, but giving materially different information about Tina. Maybe they thought they could get a bigger kickback from this third company? Anyway, the company that Tina originally contracted with learned of the new application with different information and cancelled their agreement with her. To them, I suppose, it looked like Tina lied on her application, which is valid grounds for cancellation. So, now that the finance company rescinded her offer, the dealership wouldn’t get their money, so they tried to repossess the car. Because of a problem they caused.
“What the dealer did is common practice. “
Submitting a fake application is not a common practice.