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  1. #1
    Join Date
    Jun 2014
    Location
    Northern California
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    2

    Default Financed Car Repossesed for Reason Not Stated in Loan Agreement

    My question involves collection proceedings in the State of: CA
    Mediation was required before my hearing today. I offered to pay only my balance due after the sale. The rep for my creditor denied my offer and insisted on collecting various fees. I then asked WHY my car was repossesed since I made every payment on time. The rep did not have an answer and had to call the bank to find out. He came back thinking I would accept what he had to say, but instead I asked for proof it was a breach of our agreement. He could not. He requested to reschedule for a later date in order to "find" evidence, which the judge denied. I explained to the judge that I never knew the reason why and that the reason given today was not stipulated in the evidence the plaintiff was presenting. I am now waiting on a verdict. Any opinions on my defense and if the judge might consider that the plaintiff was in breach?

  2. #2
    Join Date
    Nov 2007
    Location
    Officially across the country from where I've been all my life
    Posts
    4,494

    Default Re: Financed Car Repossesed for Reason Not Stated in Loan Agreement

    Under what circumstance did you find yourself in front of a judge? Did you sue them? Did they sue you? Why?

  3. #3
    Join Date
    Jun 2014
    Location
    Northern California
    Posts
    2

    Default Re: Financed Car Repossesed for Reason Not Stated in Loan Agreement

    Yes, they sued me for breach of contract. The creditor was requesting more time to gather evidence and the judge denied him. Is that what you're looking for? I had no problem rescheduling but the judge wanted to hear what I was disputing. The reason given by the rep was not stipulated in our agreement.

    In case you're curious, the rep for the Credit Union said I was in default because my tags were expired. It was towed from my apt. complex for that reason. Impound called the CU, they got it out, and sold it.

  4. #4
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Financed Car Repossesed for Reason Not Stated in Loan Agreement

    Did you have insurance? What does your loan contract say?

  5. #5
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Financed Car Repossesed for Reason Not Stated in Loan Agreement

    Quote Quoting thespecgirl
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    I explained to the judge that I never knew the reason why and that the reason given today was not stipulated in the evidence the plaintiff was presenting. I am now waiting on a verdict. Any opinions on my defense and if the judge might consider that the plaintiff was in breach?
    Either the plaintiff proved the case against you, or it did not. We weren't there and have no ability to review the evidence. If you are correct in your implication that the plaintiff had not proved its case, was given the opportunity to supplement its proofs to prove its case, and failed to do so, then from the tiny amount of information you've shared you should be in good shape. The rest depends on the facts and details of what happened in court.

  6. #6

    Default Re: Financed Car Repossesed for Reason Not Stated in Loan Agreement

    There is usually a sentence in all loan agreements stating that the car will be in compliance with all laws while the loan is outstanding. If the car's registration had expired that would be their starting argument for your breach. Is that enough to sell the car and when the loan was current, maybe, maybe not. Depends on state laws. Since you already had an arbitration hearing most likely this is no longer an issue. You would have to see if them selling the car breaks the contract. If they broke the contract you don't owe them anything.

  7. #7
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Financed Car Repossesed for Reason Not Stated in Loan Agreement

    Quote Quoting thespecgirl
    View Post
    Yes, they sued me for breach of contract. The creditor was requesting more time to gather evidence and the judge denied him. Is that what you're looking for? I had no problem rescheduling but the judge wanted to hear what I was disputing. The reason given by the rep was not stipulated in our agreement.

    In case you're curious, the rep for the Credit Union said I was in default because my tags were expired. It was towed from my apt. complex for that reason. Impound called the CU, they got it out, and sold it.
    Presumably the judge was provided a copy of your contract.

    If there actually is a provision (have you looked) that you be in compliance with motor vehicle laws, then you most likely will lose.

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