Ford Motor Credit Co. v. Morgan
Supreme Judicial Court of Massachusetts
536 N.E.2d 587 (1989)
The Morgans (defendants) financed a car purchase through Ford Motor Credit (plaintiff) after the dealer assured them the car was reliable, but stopped paying their monthly installments after experiencing recurring problems; Ford Credit repossessed the car and sued for the balance owed. The Morgans argued the dealer's fraud and misrepresentation excused them from further payments and also sought return of the payments they had already made to Ford Credit; the trial court agreed they owed no further payments but denied their claim to recover the money already paid, and the Morgans appealed.
Whether a debtor may maintain an affirmative action against an assignee-creditor for the return of monies already paid only when the debtor has commenced payments and received little or nothing of value from the seller.