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  1. #1
    Join Date
    Jan 2008
    Posts
    3

    Default Vehicle Repossession

    After losing my job in 2004, I went through a voluntary repossession [South Carolina]. Although I was only about 45 days late, the creditor called me daily. I simply got tired of the harassment and told them to come get it. I cleaned out the vehicle, removed the plate and about 2 weeks later a tow truck showed up and took the vehicle [98 Chevy Silverado]. The vehicle was sold at auction and I received a letter from the creditor that basically stated that the vehicle sale satisfied the loan and have not heard a word from the creditor since.

    About 6-8 months ago I started receiving mail and phone calls from a company attempting to collect on this loan - they state I owe over $6000. Again, creditor sold the vehicle at auction, sale satisfied loan and creditor charge off $4000.

    End of last week I spoke to someone at this 'debt collection' company and explained that the collateral was sold at auction, the sale satisfied the debt and that I no longer owed. I was told that the sale at auction did not matter and that I still owed on the loan and that I should 'be a man and pay the debt.'

    What are my rights in this case? It has been nearly 4 years since the voluntary repossession. If the vehicle was sold at auction for enough to satisfy the debt, how can anyone collect? Even if the vehicle sold for half of the $4000 that was left on the loan, I would have only owed $2000 and would think that the creditor would have contacted me directly and not have waited almost 4 years to hire a collection company.

    I also can't understand how the creditor can sell the vehicle for enough to satisfy the loan then 'charge' it off as bad debt.

    Thank you!

    Michael

  2. #2
    Join Date
    Jan 2008
    Location
    Alabama
    Posts
    114

    Default Re: Vehicle Repossession

    Dig up your records, you should have received a notice when the vehicle was sold at auction, and that notice would state the price they sold the vehicle for, and would also state what the amount due on your loan at the time was. If there was a deficiency it should be stated on that notification.

  3. #3
    Join Date
    Jan 2008
    Posts
    3

    Default Re: Vehicle Repossession

    That was almost 4 years ago and I can't find the notice but do remember that it stated that the sale satisfied the loan and nothing was due.

  4. #4
    Join Date
    Jan 2008
    Location
    Alabama
    Posts
    114

    Default Re: Vehicle Repossession

    Quote Quoting supreme
    View Post
    That was almost 4 years ago and I can't find the notice but do remember that it stated that the sale satisfied the loan and nothing was due.
    Perhaps then contact the debt collector in writing requesting proof of the validity of this debt. Not sure if they will have these particular documents either depending on how many times the debt has been sold, but it's worth a try.

    Your post leaves me inclined to think that perhaps the sale did not pay off the loan, because you say you received a letter from them after the car sold "that basically stated that the vehicle sale satisfied the loan", and there is a big difference between basically stating something, and actually stating it when it comes to something like this. It is pretty rare to see a vehicle sold at auction after a repo actually sell for it's FMV, so depending on what the value of the vehicle was at the time it was sold, chances are it did not fetch a price large enough to pay the debt UNLESS there was a substantial amount of equity in the vehicle at the time.

    If you still believe there was no deficiency between the sale price and the balance on your loan, then perhaps you could check with a consumer law attorney to see what your options are in this type of situation.

  5. #5
    Join Date
    Jan 2008
    Posts
    3

    Default Re: Vehicle Repossession

    When I say 'basically' I mean that's what it said. It may have been 4 years ago but I would not forget its contents considering the circimstances. That being said, the value of the truck was about double the amount owed. I see no reason why the vehicle would not have sold for $4000. It had been repainted the year before and was in immaculate condition.

    At any rate, it seems the South Carolina Statute of Limitations on written contracts is 3 years so they are sol as far as getting even a bright shiny penny.

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