Jump to content

In Florida being sued for a car loan


Chevy10
 Share

Recommended Posts

I'm located in Florida and I found out that I am being sued by Autouest (I misspelled the company name on purpose) for an amount on a car loan. I have not been served as of yet so I am holding off on posting the questionnaire until I receive the complaint. This situation is unique in that the vehicle was towed (not repossessed) by a tow yard a while back. The tow yard contacted me and the bank to have the fees paid. I, not having a job at the time could not redeem my vehicle. The bank ignored it and the tow yard eventually gained title and sold the vehicle. 

 

Fast forward to today and now a 3rd party, Autouest is suing. I assume they purchased this account at some point from the original bank. I do not know alot about the law but since the car was never repossessed what defenses can I use for this? I can say that it should be within the 5 year Florida SOL. I also never received ANY intent to repossess nor was there ever a UCC filed with the clerk of court or the Florida UCC database. On it's face am I out of luck here or is there something to work with?

 

I know there is not much information yet but I will advise as soon as I am served. Thanks in advance for any advice.

Link to comment
Share on other sites

Did the tow yard send you anything such as a right to cure? What coorespondance did you have with the tow yard? How much was the car worth vs what you owed on it? You need to check the statues of your state regarding the tow yards right to gain title....I don't know how they did that if the bank owned it, did the bank get any money after the sale from the tow yard? We're you notified the vehicle was going to be sold at auction?

UCC has statues you might want to start there. In a repossession lenders have to send you a right to cure before they sale the car. Then they need to tell you when and where the car will be sold, if they don't, they have to prove it was for a reasonable amount, and account for every dime received before they slap you with a deficiency. This is a little different, but the lender should have some blame in this if the car was secured. You might also check and see if the tow yardS fees for storage were reasonable according to your state. If unsurious they could be liable for the whole thing if you have evidence showing they were charging more than allowed.that would be a separate suit you would have to file though.

Link to comment
Share on other sites

 

 

Did the tow yard send you anything such as a right to cure? What coorespondance did you have with the tow yard? How much was the car worth vs what you owed on it? You need to check the statues of your state regarding the tow yards right to gain title....I don't know how they did that if the bank owned it, did the bank get any money after the sale from the tow yard? We're you notified the vehicle was going to be sold at auction?

I know the tow yard had sent me and the lien holder (the bank) notices as they were required, they had held the car much longer than the statute required them to before they sold it. I believe it's FS 713.78, it basically states that if the car is >3 yrs old they can sell it after storing it for 35 days, they held it much much longer than that but the bank never paid it and I couldn't since I had no job. But it is legit from everything I read and everyone I talked to, it never mattered that the bank had a lien.

 

 

 

UCC has statues you might want to start there. In a repossession lenders have to send you a right to cure before they sale the car. Then they need to tell you when and where the car will be sold, if they don't, they have to prove it was for a reasonable amount, and account for every dime received before they slap you with a deficiency. This is a little different, but the lender should have some blame in this if the car was secured. You might also check and see if the tow yardS fees for storage were reasonable according to your state. If unsurious they could be liable for the whole thing if you have evidence showing they were charging more than allowed.that would be a separate suit you would have to file though. 

Since it was never actually repossessed I have no clue how UCC will affect this. But before it was towed I had stopped making payments many months before. In either case the bank never sent me an intent to repossess.

Link to comment
Share on other sites

You have 2 problems:  1)  you defaulted on the car loan and (2) the car was towed and sold at auction for unpaid towing and storage fees.  They are separate issues.

 

First:  the car was not repossessed.  The lender would have to do that.  What happened is it was legally towed.  Once that happened you owed towing and storage fees.  Once the tow was complete and the first notice sent the tow yard had what was known as a mechanic's lien even though they didn't do repair work.  This is a lien that can be placed on property in their possession for fees owed for services rendered.  Because the car was financed they legally had to notify the bank that the car had been towed.  Often if the note is in good standing the lender will pay the fees and tack it onto the loan.  However yours was already in default and likely was not financially worth it for the bank to intervene and exercise its rights as the first lien holder.

 

Once you did not cure the towing issue and the bank did not exercise its first lien holder rights the tow yard was free to seek a clear title and sell the vehicle which it did.  The only requirement after that is that any amount earned at auction above what the towing, storage, and auction fees were is turned over to the bank to offset the balance on the loan.

 

Now that the collateral for the loan is gone and you had defaulted months earlier the loan is basically a defaulted loan with a balance.  The UCC would not apply as no repossession happened.  It appears the bank merely sold off the defaulted debt.  You have done the DV but the reality is if you don't settle they can sue you for this balance.  

Link to comment
Share on other sites

Robert Murphy is a well-regarded FL consumer lawyer who has a special interest in auto loans, repos and etc.  Your options are probably limited, but I would call him for a free evaluation of your case.  If anybody can help you, it would be him.

 

 

Florida Consumer Rights Attorney | Consumer rights lawyer ...
autofraudlawyer.com/
  •  
  •  
 
Florida Consumer Rights Attorney Robert Murphy is a Consumer rights lawyer in Fort Lauderdale, FL helping victims of unlawful repossessions, bank fraud and ...
2 Google reviews · Write a review · Google+ page
 
1212 SE 2nd Ave, Fort Lauderdale, FL 33316
(954) 763-8660
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...