I had no idea they were going to auction it for pennies then tell me that I owe the differnce. I don't have good credit, but I am scared. What is going to happen to me? Can anyone refer me to an online LEGAL HELP website.
2007-01-10 16:21:12 · 7 answers · asked by ccwife2 2 in Business & Finance ➔ Credit
First write the bozos a letter in WRITING and REGISTER THE LETTER that you are disputing the debt. This is the law in all 50 states. If they are smart they will leave you alone for now the law is on your side.
The creditors are not allowed to take any legal action or contact you until they get permission from your State Government. That will probably be the end of it unless they want criminal charges brought against them. Unfortunately when you gave them back the car they probably think of you as someone who they can intimidate into giving them more money. The law says you did not have to give the car back in the first place and you gave it back without even checking what the law says, so why not see if they can bilk you out of money as well?
Despite what you see on TV it is illegal to reposses a car without a court order, no matter how behind you are in the payments.
Third the place to go to is to your State's website and find out the laws on debt collection. It doesn't matter what it says in your contract, the law trumps whatever it says in the contract, this is a common scam used by dishonest companies and dishonest debt collectors. Most of these contracts are illegal, you can not sign you legal rights away.
A Online line legal help isn't going to help you, you will have to get the State to help you. Most States have an office full of people who are there to help to enforce laws against dishonest debt collectors. If your state doesn't, seek out an legal aid lawyer and he will help you.
Even a lawyer who you pay will only charge you $300 to $400. Under the law, REMEMBER IT DOESN'T MATTER WHAT THE CONTRACT SAYS, under the law the contract became null and void once they took possession of the car. This is what the lawyer will tell them.
You say you had them take it? That was a big mistake, once you let them take it you lost what ever leverage you had to make them reposses the car with a court order, which would have automatically protected you against making more payments or hearing from them again. Regardless you still are protected, but you are going to have to hang tough. Just remember, under the law, do not have to pay one more cent.
Lastly it's usually a good idea never to but anything on payments or rent to own. For the life of me I don't know why people do this in the age of electonic calculators. You usually have to pay two or three more times as much than if you borrowed the money from the banks. People who say they have a lousy credit report and stay away from banks are foolish. Some people are obsessed by their credit reports. Banks will lend to almost anyone and they are forced to abide by the law. Never buy a car with or anything else with payments. Take a calculator multiply the mothly payment by the number of months and a $20,000 car becomes a $60,000 car.
But in the end, you have absolutely no problems. Just hang tough and hang up the phone. If they phone back, then they are breaking the law. In all 50 states it is illegal to call back once the receipent of a bill collector's call tells the collectors in writing that you are disputing the debt, they are not to contact you, Period. Just hang up. If they call back, file a complaint with the police.
If you want to get rid of them sooner than later than hire the lawyer. They will go away real quick before they are charged for fraud.
What Socialguy says is 100 percent against the law, the contract is worthless.
2007-01-10 18:35:35 · answer #1 · answered by Anonymous · 0⤊ 0⤋
When your car gets repossed that's what happens. They sell the car at auction and you pay the difference and that is why at all costs you need to avoid having a repo. They cannot do anything to you whatsoever as long as you make some payment. Even if it is $20 a month, you are paying your debt and they have to take it and leave you alone. The only other way to avoid doing this would be to file for bankruptcy which will further screw your credit up for years on end. Your best bet is to pay what you can and don't stop making payments or you can be sent to collections and then you'll have a mess on your hands.
2007-01-10 16:30:18 · answer #2 · answered by freakyallweeky 5 · 0⤊ 0⤋
The finance company would get estimators to assess the vehicle and get the appropriate value of the vehicle (it is in the best interests of the company to get as much as possible for it - so possibly the car wasn't in the best condition when they repossesed it).
The finance company will organise with you a suitable payment arrangement to pay off the arrears. If you are unable to borrow or lend finances from friends or family to pay this off, I suggest you file for Bankruptcy or Part 9.
Good Luck
2007-01-10 16:29:18 · answer #3 · answered by sureyeahfinewhatever 2 · 0⤊ 0⤋
i was in the same situation. trust me, i know it's scary. take a deep breath. i owed 12,000 on a car, couldn't afford it and i had them just take it (i knew i would owe -something- on it after they auctioned it) they auctioned the stupid thing for 7,000 so now im stuck with a 5,000 difference. stupid yes. but they 'can' do that to you. did you try selling it beforehand? (sorry i do not have a legal help website) i would consult with a lawyer. (most are free consultations)
2007-01-10 16:27:51 · answer #4 · answered by le_disko 2 · 0⤊ 0⤋
That is a volunteer resposess. They will sell it at an auction and take you to court for the difference. If they win it will be a judgment on your credit report for 7 years.
http://www.disputedemon.com/credit-score/
2007-01-10 16:45:52 · answer #5 · answered by CreditScoreBooster 2 · 0⤊ 0⤋
They will auction it off and the difference of what they sold it for and what’s still owed on the loan will still be owed by you. For example, if you still owe on the car $8k and they sold it for $7k, you will still owe them $1k. They will be calling you soon for the $1k. You will need to pay it or make payment arrangements. If you refuse they will go to court get a judgment and possibly your wages will be garnished.
Bad situation.
2007-01-10 16:42:07 · answer #6 · answered by socaliguy 2 · 0⤊ 0⤋
they can't do diddle/
forget it.
hassle you and go on your credit..
so what..its there already..
so be it...
you can't pay for it anyway...
and they stick it to you twice........
let them rant and rave and just ignore them and their talk................
and thats is all--just talk...
2007-01-10 16:45:19 · answer #7 · answered by cork 7 · 0⤊ 1⤋