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CU wants balance on Repoed Car after auction


DivineMsM
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Hey all,

I'm new to the board and am hoping one of you wise ones can assist me with this issue. I moved from fl to ga about 8 months ago. When I left fl in June of 2006, I was current on my car note. Once I got to Ga and did not find a job immediately I fell behind and became two months late on my note with the credit union. They called me and I spoke with one of their reps and told her that I had become late due to lack of a job but that I was due to start working in about 2 weeks and would be able to make payments to catch up. fast forward to about a week later and my car is repossessed.

I was under the impression that once they picked up my car I should have been given the option of getting my car back via some arrangement with the credit union, or something of the sort. For days on end I called the account rep at the credit union and to no avail; she never returned any of my calls. The next thing I know, the car is sold at auction and I'm being told that I'm responsible for paying the balance on the loan (which is over $2000 because of repo/storage fees).

My question is this, should I even be held accountable for this balance being that they never gave me the chance to get my vehicle back when they picked it up? Are they allowed to charge this off? I'm in the process of fixing all the issues that have sprung up on my cr because of my joblessness last year. Any assistance you can give would be really appreciated.

Thanks a million

Ms M.

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There is a very specific procedure that must be followed in order to perfect a deficiency. Start reading up on your Florida law. Look at chapter 679 and read about your right to a "Request For Calculation of Surplus or Deficiency". Chapter 679 will also give you all the information on what the lendor SHOULD have done prior to the sale and your rights if they did not comply. Make sure you keep very detailed records of everything that happens from this point forward.

You'll probably have more specific questions once you have done some reading. Post them and we'll try to help you along.

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which is over $2000 because of repo/storage fees
Not for any remaining balance on the auto loan??? That's over $2000 bucks for Repo Fees and Storage Fees.

It appears that the sale (auction) of the car actually covered the loan balance in full.

Talk about robbery ... Good Luck.

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There is a very specific procedure that must be followed in order to perfect a deficiency. Start reading up on your Florida law.

I was under the impression that she would need to follow the state laws regarding repo laws in the state that the car was repo'd???

It appears that the car was repo'd in the state of GA here, shouldn't she be checking into GA laws?

The reason I ask this, is because a CU in California repo'd my car after I moved to TN, and I am being told by legal advice that they have to follow TN repo laws (which they never did).

Either way, in my case, they didn't follow TN or California laws when they repo'd it.

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I was under the impression that she would need to follow the state laws regarding repo laws in the state that the car was repo'd???

Yes, I believe that's right. For whatever reason, I initially interpreted the post as a Florida repo. Georgia has basically the same law, since it falls under UCC. I'll post GA law unless someone else gets to it first.

Thanks!

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In most states, the bank must notify you of your 'right to cure' -meaning what you have to do to get your car back once they've repo'd. Most of the time what that means is paying off the loan in full .. in one lump sum.

As already stated, if they did not follow the law to the letter in the repo process, before and after the sale, they forfeit their right to collect a deficiency.

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Ms M, I'm in Florida. Just saw an infomercial:

For $88.00 Down and $88.00 per month you Drive regardless of past credit problems. Everyone is APPROVED. If you are upside down in a current auto loan, they will pay it off. All trade-ins are accepted.

Visit: www.crazy88auto.com

or

Telephone to speak with a Loan Consultant: 1-800-542-2288

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Ms M, I'm in Florida. Just saw an infomercial:

For $88.00 Down and $88.00 per month you Drive regardless of past credit problems. Everyone is APPROVED. If you are upside down in a current auto loan, they will pay it off. All trade-ins are accepted.

Visit: www.crazy88auto.com

or

Telephone to speak with a Loan Consultant: 1-800-542-2288

With all due respect, going further into debt is not an answer here.

With regards to the poster's question/confusion; a lender is not obligated to let you "catch up" on your payments or reach any other accord...whether they followed the letter of the law during the repossession and subsequent sale IS worth trying to clear up but assuming the did do things by the book, they have the right to repossess at any time the loan becomes deliquent and once the asset has been recoverd, they have the leagal right to sell it rather than work out a deal with the debtor.

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With all due respect, going further into debt is not an answer here.

What are you talking about !!!

With all due respect, I am not talking about obtaining more credit cards to go further into debt. An auto had been Repo'd and Ms. M, who is employed, is entitled to have a car for transportion. In Florida, it is nearly impossible to live or work without a vehicle. And Georgia is no different! A car is a necessity.

Again, Ms. M if you need an auto, visit: www.crazy88auto.com

$88 Down and $88 per month. It would be extremely difficult to miss any payment with such l-o-w monthly payments. I could pick up bottles and aluminum cans to make a $88 payment, if necessary.

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If you are upside down in a current auto loan, they will pay it off.

Yeah.. right... and do you know HOW they do that ?? They tack on the amount outstanding on your FIRST loan onto your "new" loan !!!! You do NOT get out of the upside down loan that easily and you surely can't believe ANY car dealership is going EAT that cost !

That kind of bait is exactly the kind of 'deal' that EVERYONE should run away from .. and FAST !

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If you are upside down in a current auto loan, they will pay it off.
Yeah.. right... and do you know HOW they do that ?? They tack on the amount outstanding on your FIRST loan onto your "new" loan !!!! You do NOT get out of the upside down loan that easily and you surely can't believe ANY car dealership is going EAT that cost !

That kind of bait is exactly the kind of 'deal' that EVERYONE should run away from .. and FAST !

LADY, only posted what was advertised on TV.

Anyway, I believe this is called "Refinancing" and one would not believe that the car dealership is going to EAT anything !!!

They will most likely be Refinancing at a much lower interest rate than the consumer is currently paying "at $88.00 Down and $88 per month."

Just wish that the car dealership would throw in Refinancing for my 29.240% credit card debt... Now that would be bait or a scam! :) and I might run FAST or I might not. But, I would have to check it out first.

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What are you talking about !!!

With all due respect, I am not talking about obtaining more credit cards to go further into debt. An auto had been Repo'd and Ms. M, who is employed, is entitled to have a car for transportion. In Florida, it is nearly impossible to live or work without a vehicle. And Georgia is no different! A car is a necessity.

Again, Ms. M if you need an auto, visit: www.crazy88auto.com

$88 Down and $88 per month. It would be extremely difficult to miss any payment with such l-o-w monthly payments. I could pick up bottles and aluminum cans to make a $88 payment, if necessary.

A car is not a necessity; transportation can be but necessity or not, no one is "entitled" to anything they can't pay cash for and that includes a car.

You sound like you are advertising for this company...the last thing this person needs after having a car repossessed is more debt on a car; I don't care how LOW the payments are. It sounds like the kind of "great" deal (for the car lot) where you pay $10K for a car worth $4K and you spend the next 10 years at $88/month paying it off.

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They are obligated by law to give the debtor cure date before selling the vehicle.

I agree but I wasn't saying otherwise.

All I was saying was that the lien holder is not obligated to "work out" an arrangement of any kind with the debtor. The debtor has the right to pay for the vehicle in full and get the vehicle back but the lender doesn't have to accept anything less than full paymet; at least not in most states.

If the lien holder didn't follow the law, then that's another matter which is why I said that the poster needs to investigate that aspect of it.

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A car is not a necessity; transportation can be but necessity or not, no one is "entitled" to anything they can't pay cash for and that includes a car.

You sound like you are advertising for this company...the last thing this person needs after having a car repossessed is more debt on a car; I don't care how LOW the payments are. It sounds like the kind of "great" deal (for the car lot) where you pay $10K for a car worth $4K and you spend the next 10 years at $88/month paying it off.

ok. ok. ok.

Listen up EVERYONE, "you are not 'entitled' to a car, unless you can pay CASH."

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  • 1 year later...

Hello Lady in Red,

Would you happen to know the Utah link to learn about repo laws for this state, as my hubby and me are trying to learn the ropes concerning our recent car repo, and how to deal the deficiency issue.

Regards,

Punky

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I can tell you from experience how it works I just went trough it two moths ago.

The creditor has to follow what ever laws of the state where you live now and where it was repoed. I had mine repoed and they did not want to let me try and pay it up to date. I looked up y states laws and saw where Indiana has a ten day period where you can get the vehicle back. In Indiana if you make any type of payment of partial debt you can ask for another ten day extension. I finally got to talk the person in charge of the repo office and talked with her and she agreed that I was right and they let me settle the account and get my truck back. I was lucky that my VA disability case was final and I got my back pay check in time.

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