Note: If you'd like to respond with questions or advice please do so before Monday, Feb 11. I'm supposed to call collections back then or they say they'll turn the case back to the financial company. Thanks so much!!
Hello, all! To summarize, last year I purchased a used car with a loan through Toyota Financial. Months later my secondary vehicle was stolen, I had to get another car, financial hardship, and I was looking at some pain from some direction. Rather than skip payments and risk losing the house or something I decided the best route would be to sacrafice the new car.
Toyota customer service advised me that this might be the best route, after researching the risks myself, and told me that I should turn it back in to the dealer and sign the proper paperwork. When I turned it in I asked for paperwork but was denied. I called cust service again and they said it would be mailed to me. I never received what they were calling Post-Surrender Documentation even months later when another rep told me it may have been faxed to the fax machine that I've never owned.
I received the papers "Explanation of Calculation of Surplus or Deficiency" and "Notice of Our Plan to Sell Property". The values on both of these documents are a little off, as well as the date of when the car was surrendered. The date of surrender according to their records is a month later than the date that I actually turned it in. The VIN number is even missing a digit on one form.
I called and was told that I would be able to attend the auction and would receive notice of time and place, but that never came. I later found out that I would not be able to attend a private auction at all. The car was pretty new with a KKB retail value of $22k, private party $18k, and trade in of $15k but it sold at auction for less than $13k. This seems drastically below fair market value even for auction, which was held by Manheim of Kansas City. The reps at Toyota couldn't/wouldn't give me details of the auction such as attendance, number of bids, etc. but Manheim seems to be a reputable company. I even found the car on the buyer's website, some foreign site, and they apparently sold it for just a little over $15k. They now want me to pay a difference of over $12k.
Toyota Financial told me they'd settle for $10k and that I'd have 30 days to come up with it. I was looking into the matter when only 20 days later a collections agency contacted me because the case had been turned over to them. I've discussed the matter with them and they've already taken the settlement down to $8,900, which I still can't afford in 24 hours which is why I had to surrender the car in the first place, but say that soon they'll have to turn the case back to Toyota who will probably seek legal action.
I've talked to a couple of lawyers but they also want money up front that I don't have and only seem confident that they can lower the settlement price... which I seem to be able to do myself a little. What I'm wondering is if this goes to court do I have a case at all?
I read about a case, Ford Motor Credit Co. vs. Henson, in which the debtor may have had a situation similar to mine. She filed a counterclaim for damages alleging that the sale and notice were not in compliance to the Uniform Commercial Code. Basically, that the sale was not done in a commercially reasonable manner.
I'm curious whether I have a case and how I would go about it. With the facts that I was not given Post-Surrender Papers, that their records show the date of surrender off by a month, that I was misled about my role in the auction, that the auto may not have been sold in a commercially reasonable manner and far below fair market value, that the case went to collections earlier than promised, if this is enough for me to win. I don't want to sue them for every penny, I don't care to win any money at all, I'd just like to not pay over $12k. Up to $5k, sure, but not that much.
Does anyone have any advice or am I just hosed and should try to work with what I can get them to agree on? I'm guessing that if I want to counterclaim I will have to wait until I get their actual claim for court. I'm just not sure if the judge will rule in my favor or exactly how I would present my case. Any advice would be helpful!
Thanks!
Willy

