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  1. #1
    Join Date
    Feb 2008
    Posts
    1

    Default Auto Accident And Auto Loan Responsibility

    I was involved in an auto accident here in Texas in which my vehicle was totaled. This was almost a year ago and now I am getting threateing phone calls from the bank regarding the loan for my vehicle.
    Currently the auto accident is in litigation and has not been settled with the other parties insurance. I was out of work for five months because of a back injury caused from the accident. I was unable to continue making payments on the car and now am just getting things back together.
    The automobile was being stored at a storage facility who sent letters to the owner of the car (the bank) and myself stating that we needed to get the car or it would be sold at auction.
    I was still out of work and didn't have money to pay the bill. The bank did not go get the car either resulting in the car being sold.
    Now I am told that I can be sued or have my wages garnished because I defaulted on the loan. Is this possible and why does the bank not unerstand that I dont have the money or the vehicle? Is there anything I can do?

  2. #2
    Join Date
    Jan 2008
    Location
    Toledo, OH
    Posts
    16,307

    Default Re: Auto Accident And Auto Loan Responsibility

    Now I am told that I can be sued or have my wages garnished because I defaulted on the loan. Is this possible
    Yes. Just because the car was totaled does not mean you are no longer responsible for the loan. Typically, when a car you're still making payments on is totaled, the insurance company cuts you a check and you you send that off to the bank to take a bite out of the balance owing or pay it off entirely.

    and why does the bank not unerstand that I dont have the money or the vehicle?
    It isn't that they don't understand. They understand. They just don't care.

    It sounds as if you've not kept them informed as to your situation. You're going to still have to pay what you owe on that vehicle, so you'd do well to call the bank and speak to someone about what's going on. Explain that you've not yet received payment from the insurance company, it's still wending its way through the courts, and ask for payment arrangements until the case is settled.

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