Advice on reposessed vehicle deficiency balance - The Bills.com Blog

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Advice on reposessed vehicle deficiency balance

Question: I have some questions about a vehicle that was repossed. Can I ask you? I purchased a vehicle and put 500 down. The loan amt was signed for 15,000 and 1 mo later I was sent a packet saying it was 22 or 21,000. I asked to return it that that was not the amt. They said no I had already financed it and that was it. So from02/02/03 till 9/05 I pd 350 a month. They repo'd it illegally one time and took 2 payments off the end for the inconvience. Then told me I just needed to resume the paymts normally and I was caught up. I was then sent a letter saying i had to pay 1200 $ more with in 7 days or they would repo it. I had just pd like 1100 to be completely caught up. My estimation was around 12,200.00 I pd. Then they sold it at auction for 7500 and that was 09/05 now they are telling me I owe them 9,000.00 and they just recently reported that they repo'd it on 07/07 (09/05 was the time). They said I owe for the interest from 05 till 08 I think- How can they charge me interest on something that was sold and the loan is pretty much pd off? Isn't this illegal? The 2 companys that they "sold" the acct to told me that they couldn't do this

and gave it back to them? This is wrong.

Answer: Based on the circumstances you have described to me, I would agree with you that the repossession of your vehicle and the claims made by the lender after the repo were at least wrong, if not illegal.

What they are attempting to collect on, however, is called a deficiency balance, which is typical after a repo when you still owe money on it.

I cannot say specifically if the lender broke any law, as the laws regarding repossessions vary significantly from state to state.

I encourage you to seek the advice of an attorney to discuss this repossession, applicable law, and your rights in this situation. A consumer rights attorney in your state will know if the lender acted within the bounds of the law, and what recourse you have if any law was

violated. If you do not know an attorney with whom you can discuss your problem, you should contact your state or county Bar Association?s attorney referral service. These services allow you to describe your legal needs so they can refer you to an attorney with experience in the area in which you need assistance. An attorney can advise you of your rights, negotiate with your former lender to resolve their claim, and, if necessary, file a lawsuit against the creditor in an attempt to resolve this problem.

I wish you the best of luck in resolving your financial problems. I certainly hope that you are able to resolve this claim with the lender, be it in court or out.

I hope that the information I have provided helps you Find. Learn. Save.

Best,
Bill
www.bills.com

Also, make sure to get a free financial health check-up with Bills IQ!

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Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!

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