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  1. #1

    Default Dealer Floor Plan Line Repossessed - Cars Sold, but No Credit Given Back to Dealer

    My question involves an auto loan or repossession in the State of: SC. I had an independent used car dealership several years back ~(2007-2009). I had a floor plan line with a company, who eventually repossessed the cars that I had when I defaulted on the line. Part of the line was for retail sales (borrow the money to purchase the car, sell the car, and then pay back the full amount), and part of the line was for financing/leasing (borrow the money to purchase the car, lease the car to a customer, and then pay back the balance as lease payments are collected). When my dealership closed, I had several retail vehicles and several lease vehicles outstanding. The retail units were repossessed and sold. On the leased units, all of the contracts were turned over to the floor plan company, and they began collecting the payments. Some of the vehicles were repossessed if customers stopped paying, and others were left until the customers paid them off.

    Well, back in ~2009, the floor plan company filed and got a judgment against me for the whole balance of the line plus fees, repossessing charges, etc. ~$120K in total. I heard nothing from them for several years, but they were recently (2014) bought out or merged with another company, and the collections department started calling me, trying to collect on this balance and judgment. However, during the course of time since I defaulted, they collected funds from the sale of the retail vehicles; they collected funds from the customers who made payments to them on the leases; and they collected funds from the sale of repossessed leased vehicles. When I finally got to speak to a manager at their collections office, I confronted them on these issues and asked that they produce the statement of accounts showing what I owed and how that balance was accrued. They only produced the records showing the original balances at the time of default, and the summary of charges they incurred for repossessing the vehicles (towing, service charges, etc.). This is what added up to the judgment amount. They refused to provide any data on the funds they collected from the sale of these vehicles, or from customer payments.

    In my estimates, (using a rough condition wholesale value of the vehicles that were repossessed and sold at auction, and on the fact that on the leased vehicles , the majority of the ~20 vehicles were at least half paid off at the time of the default), there should not be any balance remaining. In fact, there should be a credit in the neighborhood of $40,000 or so. When I confronted them with these estimates, and again demanded a statement of accounts, they refused, and began ignoring my calls and inquiries.

    This judgment remains on my credit report, and I want it corrected and removed. I also think that I should be entitled to any funds that were collected in excess of the sum of the default amounts, fees, etc. Can anyone here provide me with some direction on how I can pursue this any further? Thanks.

  2. #2
    Join Date
    Jan 2006
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    38,867

    Default Re: Dealer Floor Plan Line Repossessed - Cars Sold, but No Credit Given Back to Deale

    A judgement is a judgment. It is what you owe. There is no supporting statements or calculations to provide to you. The only thing you need to understand is a court said you owe that much so that is what you owe.


    I undrrstsnd your argument that subsequent to obtain the judgment there were payments and other credits that should have been applied to the balance of the judgment.

    You will have to go to court to attempt to argue the judgment creditor has already received some of the money owed within the judgment.

  3. #3
    Join Date
    Mar 2013
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    18,302

    Default Re: Dealer Floor Plan Line Repossessed - Cars Sold, but No Credit Given Back to Deale

    Quote Quoting bigkidatheart
    View Post
    Can anyone here provide me with some direction on how I can pursue this any further?
    Yes.

    Hire an attorney and get this back into court to get the money credited to the judgment.

    However, even if the judgment amount changes, nothing changes on your credit report unless you pay off the full amount owed and, even then, it will just show a judgment satisfied which is just less negative than the unsatisfied judgment.

  4. #4

    Default Re: Dealer Floor Plan Line Repossessed - Cars Sold, but No Credit Given Back to Deale

    Thanks for the responses. I can pursue that route. Before I do that, will I need a lawyer to get the statement of the credits, so I can see exactly what the balance is? Are they required to provide it if I request it in writing? If so, do I have to send a certified letter requesting it? Just want to see if I need a lawyer for the whole thing, or just to get the judgment updated once I get the balance. Thanks.

  5. #5
    Join Date
    Mar 2013
    Posts
    18,302

    Default Re: Dealer Floor Plan Line Repossessed - Cars Sold, but No Credit Given Back to Deale

    Sure, send the letter. That's always a good start.

    If they don't respond or respond unfavorably, it's likely to be complicated getting them back into court for the adjustment. So you probably will need an attorney. Once you have filed whatever papers are required, the court can compel them to provide the credits if they won't do it willingly.

    If the letter doesn't work I would certainly suggest consulting a lawyer to find out what it would take to do this and how much it will cost you.

    If you have to spend a few thousand to save $40,000 it'll be worth it.

  6. #6

    Default Re: Dealer Floor Plan Line Repossessed - Cars Sold, but No Credit Given Back to Deale

    Thanks again. I'll definitely get the letter requesting a statement and status of the account, and will send it certified to them. I'll let you guys know of the responses I get. Thanks for your help!

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