Is this considered a "secure debt" and can it be collected on???

[Beefcake]

Hello everyone! I am new to this forum and this will be my first post. I have been doing a lot of stuying on how to fix my credit myself and this site has been tremendously helpful and I extend my thanks to all those who post useful information here with in the forum.

I had a loan that I borrowed against a vehicle I owned (Was paid off), found myself in financial trouble and was unable to keep making the large payments on this loan. Needless to say, my car was taken by them as I put it up for collateral on the loan. Now they are still comming after me for nearly the full amount of the original loan. My questin is this, can they still legally come after me for that amount and report it to the CA's? How does the FDCA come into play regarding this type of loan/collection? What are my rights?

Any help on this is much appreciated!

Thanks!

[Recovering Attorney]

If they sold it for less than you owed, they can go after you for the deficiencyt. There is a 4 year SOL and the uCC applies. Of course, how they approach you in collection is subject to FDCPA, if it is being mde not by the lender but by a third party collector ( CA< attorney, JDB)

[Beefcake]

My problem is, they took my car for payment on the loan. Was the car not applied to what is owed? How can they still come after me for so much after seizing my vehicle?

Thanks.

[stancil1]

As far as the FDCPA and the FCRA are concerned, you borrowed money from a lending institution and collateralized it, in this case with your vehicle. I'm not certain about the laws in Utah where your from, but in Texas, what ever is collateralized has to be sold to the highest of 3 bidders and the amount goes to cure the default. If there is not enough to cure the default, which is usually the case, you owe the difference. If there is more than enough to cure the default, then the amount left over is returned to you. In Texas, the lender is responsible for providing you with the names of the 3 high bidders and the amount of the sale as well as the accounting and how the sale effected the amount that you owe or are owed.

[Beefcake]

As far as the FDCPA and the FCRA are concerned, you borrowed money from a lending institution and collateralized it, in this case with your vehicle. I'm not certain about the laws in Utah where your from, but in Texas, what ever is collateralized has to be sold to the highest of 3 bidders and the amount goes to cure the default. If there is not enough to cure the default, which is usually the case, you owe the difference. If there is more than enough to cure the default, then the amount left over is returned to you. In Texas, the lender is responsible for providing you with the names of the 3 high bidders and the amount of the sale as well as the accounting and how the sale effected the amount that you owe or are owed.

I see. Thank you! This helps. My original loan was $2500 and I paid $150 per month for 16 months. They are stating that I still owe $2000. I know there is intrest involved here but that amount paid, plus the vehicle seems like I should owe less than $2000. Not sure what to do. They have reported to the CRA's and I am trying to get this cleared up.

[stancil1]

You might try looking here, this may help. Just search this document for Repossession of collateral. http://www.law.gonzaga.edu/Files/Library/Reference+and+Research/WashingtonLawyersPracticeManual/Chapter15CommercialPractice.pdf

Pay close attention to Default and Remedies as well as Defending the Debtor

Hope this helps

D

[MountainDude]

Also, in some jurisdictions you are responsible for the cost of the auction, and the creditor's attorney fees. There is also usually a provision to demand an accounting of the costs of the sale.

j