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  1. #1
    Join Date
    Dec 2007
    Posts
    3

    Post Finance Company To 'Repossess' Collateral From Someone Not On The Loan

    I live in South Carolina and need some help with understanding something about a finance company. My Father got a personal loan through a finance company in 9-06. To get this loan he needed collateral, The finance company told him with my permission he could use my car title, but the car is solely in my name my Father's name is not on my car title anywhere, did sign a paper saying he could use it. BUT my name is NOT on the loan as a co-borrower or a co-signer. My Father passed away in April 07 leaving an unpaid amount on the loan. I have been trying to pay the loan but to no avail I can not pay the required payment a month and have tried to explain to the finance company, they will not spaek with me about maybe going down on the payment because my name is NOT on the loan but yet they say if I do not pay the payment they WILL REPOSESS my car. My question is since the car title is only in my name and the loan was ONLY in my Father's name can they take my car if I can not pay the amount he paid per month? PLEASE HELP ME!!! I NEED MY CAR FOR the transport of my special needs child. I am WORRIED!!!

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Finance Company Fraud Or Not? Please Help..

    If you voluntarily gave the finance company the right to use your car as collateral, and to repossess it if there was a default on the loan, that's not "fraud" - so what, exactly, did you sign?

    Was an estate opened? Was this creditor notified of the estate? Were your father's assets inadequate to pay his debts?

  3. #3
    Join Date
    Dec 2007
    Posts
    3

    Default Re: Finance Company Fraud Or Not? Please Help..

    I did not know until today that I supposedly signed a non-obligor paper on the loan but I still am not on the loan itself. My Father had no estate because his house was mortgaged and it has went into foreclosure. I do not think he had any assets all he had was the house that was morgtaged. But probate has not yet been filed either. The non-obligor agreement states that if the loan is in default by the borrower the non-obligor is liable for the contract agreement except for repayment of the loan. SO what do I do??

  4. #4
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Finance Company Fraud Or Not? Please Help..

    If you guaranteed the loan with your vehicle, and there is a default, then they will pursue your vehicle. You can try to negotiate a payoff based on the value of the vehicle - if they repo it, they will get a wholesale price at auction and will also have to absorb the cost of the repo and sale. If you already have a loan on the vehicle, they would also have to pay off that lender from the proceeds. So they may be willing to negotiate.

    You don't tell us how much money is at stake, or about the rest of your financial picture - if things are really bad, you should consider consulting a bankruptcy lawyer.

  5. #5
    Join Date
    Dec 2007
    Posts
    3

    Default Re: Finance Company Fraud Or Not? Please Help..

    The loan in question was for @ 3000.00. Payments are at 165.21 monthly, my father's income was 1800+ a month and my income is 560.00 a month with which I have to pay my house payment at 390.00 and the light bill or phone bill which ever one I have arrangemants with to pay. One of the major problems I have as the car owner is on the loan documents my father is listed as the sole and legal owner of the car, no where on the documents am I shown as the car or caollateral owner, even though my name is on the title as the owner of the car. I am only shown as the Non-Obligor, but that does not say what I am Non-Obligor for.

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