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Any success with Repos using this method?


Determined1
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Hi,

I'd appreciate the forum's advice on the following. I got into a dispute with Ford Credit over 2 tread seperations on my Ford Explorer in 2000.

I held 1 payment and asked they pay for new tires (this was during the Firestone fiasco and I had a few months left on the lease). Their response? They repo'd the car.

I lived in CA at the time, and FL now. The debt is with a CA who I just DV'd. I came across the following letter in one of these forums, and wondering if I should use some form of a DV letter to Ford Credit, or the following, or something else that might be recommended. Here's the letter (from whychat):

Date

Name of Original Creditor

Address of OC

Name of Original Seller (car dealer)

Address of OS

Re:

Account # (ca #)as reported to (list CRA's)

Account # (oc #)

(Make -model -vin# -sale date)

To whom it may concern;

I am writing in regard to the above referenced accounts and transactions.

This is not a refusal to pay, but a notice that this account is disputed.

This vehicle was repossessed by (name of OC) in the State of (X) on or about, xx/xx/xxxx, and resold on or about xx/xx/xxxx.

Under the laws of the State of (State of Repo) UCC § 9.506 and State RISA and MVISA statutes a deficiency can not be claimed unless all of the required notices were properly and timely given, and all of the allowable redemption and cure time limits were adhered to.

Please provide copies of the legal notices and proof of the commercially reasonable manner of the resale of the subject vehicle.

If no such proof is provided within 14 days from receipt of this notice, the alleged claim of a deficiency will be considered null and void, and any continued collection activities, or continued reporting of this invalid claim on my credit reports will be considered a violation of the FDCPA and FCRA.

In addition, if you singularly or severally fail to comply with the above requests, I reserve the right to seek damages against all parties, under all available State and Federal statutes and UCC § 9 remedies.

Sincerely,

XXXX

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In general, it never hurts to have all the facts available and the DV process is a good way to accomplish that. However, what is your ultimate goal here?

Do you think that they did not follow the proper procedure or are you simply demanding that they prove they did follow it (nothing wrong witht that either way...just asking)?

If they show that they did follow the procedures applicable, what do you plan to do then?

Do you know what the codes you are citing actually say and/or if they are applicable to your situation?

Also, I doubt any court would uphold your 14 day demand unless your state specifically gives them 14 days and no more...for most things, 30 days is considered reasonable and it's often better to even give them a bit more (just to show a court, should you ever wind up there, that you acted reasonably and gave them ample opportunity to reply).

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I have never leased a car, only purchased, but the thought crossed my mind that standand repo laws might not be applicable in a lease. If I'm not mistaken, when you lease a vehicle, you are technically financing the depreciation of the vehicle from it's new value to the residual value at the end of the lease. The vehicle is the collateral and the amount due would be the total payments of the lease.

Wouldn't it seem reasonable that the only amount due would be the remaining balance on the lease total, not the entire value of the car? Why would the lendor need to sell a vehicle they already own? Don't they retain title to the car or does title actually pass on a lease? Lets say you only owe maybe 6 more payments of, say $400.00. That's $2400. The residual value of the car might be 8 or 10 thousand. Auctioning the vehicle to the recover the $2400 seems irresponsible and would lead me to the conclusion that the lendor caused it's own damages (not recoverable I think)

Can someone clarify this or have I confused the situation too badly? My head hurts now.

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Thanks to both for your answers. My goal is to get the item off my reports, but if they put up a fuss I wouldnt hesitate to taking them to court.

The reason for the repo wasnt the 1 payment late, but the fact that I had 2 tread seperations on tires that were not yet in the recall that at the time was front page news. I mentioned this to Ford - who used it as the reason to decline paying for new tires, and I believe their reason to pick up the car. It turned out my tire model became part of the recall 2 months later....

As for the financing aspects of it, I dont recall all the terms, but other factors that could change the equation could be over the milage allowance, bad tires, other maintenance issues...essentially the vehicle having more depreciation than the lease allowed for.

I dont think they followed proper procedure. First, I spoke with them 2 days before they picked up the car, and I was told they were waiting for a manager to get back to me regarding my tires. I was never given the slightest warning of a repossession, in writing or verbally (was only 30 days past due). In addition, they never notified me of the sale of the vehicle.

So the suggestion is using a DV letter over the other I posted? Any thoughts?

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A lease is simply a financing arrangement and in most respects, it operates as any loan does.

Among other thigns, the financing company, even Ford Morot Credit is NOT responsible for defects with the car (or tires or anything else) and such issues are not a viable reason for withholding a lease payment. I understand that we usually don't separate in-house financial arms (like GMAC and GM) from each other but Ford Motor Credit is no more responsible for manufacturing defects for your Ford vehicle than your local Fist National Bank would have been...it may seem "fair" to withhold a payment but contract law does not see it that way.

As the law sees it, you entered into a contract and the tire issue notwithstanding, you had a legal oblibation to make the payments. The moment you didn't make your payment on time you were in technical breach of contract and the financing company could legally pick up the vehicle and to sell it to recover what was due.

Unfortunately, selling a vehicle is the way they recover what is owed them and the law only requires them that they sell it for market value (which is usually VERY low wholesale). That's one of the many reasons why it's always best to avoid a reposession; not only is it a big black mark on your credit but you loose control of the process and almost always end up owing more than you would have.

You may have (or had) a claim against Ford for the tire issue but that is a separate issue. I realize it's too late now but the more correct thing to have done would have been to make the lease payments as required and to have pursued the tire issue on its own merits.

If, however, they did not follow the law then you have an issue you can deal with but while lenders/repo companies do screw up, they do this every day and know the laws they must follow...I think it's doubtful that they didn't do what the law required.

At any rate, requesting they substantiate that they followed the law is not a bad start but I wouldn't get my hopes up.

Another thought...if you really think they didn't follow procedure...why not run this by an attorney and let him/her write the letter for you...a few bucks for a letter from an attorney could be a very good investment or at least, save you some time.

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I'm not posting regarding the tire defect. I never claimed Ford Motor Credit was responsible for the product defect - but their parent company, Ford Motor Company was, as was upheld in numerous class action lawsuits won by consumers on both purchases and leases with tread seperations.

This issue aside, I'm just looking to clean the item off my report.

Any suggestions out there regarding a DV letter vs the letter I posted?

Thanks.

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