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  1. #1
    Join Date
    Dec 2008
    Location
    No. California
    Posts
    6

    Unhappy We Surrendered, They Sold Without Notifying Us

    My question involves an auto loan or repossession in the State of: California
    My husband and I voluntary surrendered a vehicle that was costing us more in repairs than it was worth and purchased another vehicle 2 years ago. It was financed by a credit union was was recently purchased by another credit union. The original credit union sold the vehicle we believe at an auction. Someone told me that this was illegal and that we should have been informed that the vehicle was being sold before hand to give us the option to take it back or sell ourselves. We found out it was sold when the new owner got a parking ticket and the vehicle got towed and the bill came to us. The original credit union never asked us for a dime after I told them the vehilce had been sold without our knowledge and was still in our names. Now after all of this time and the new credit union is telling us we owe a deficiency of $11,000. Does this mean we owe the balance after all of this time. Also, the account shows up on our credit report one month under one account with a balance owed of $0, then not two months later as charged off with a balance owed of $11,000. How can I fix this?

  2. #2
    Join Date
    Mar 2007
    Posts
    9,096

    Default Re: We Surrendered, They Sold Without Notifying Us

    When you surrendered a vehicle, what did you think happened?

  3. #3
    Join Date
    Dec 2008
    Location
    No. California
    Posts
    6

    Default Re: We Surrendered, They Sold Without Notifying Us

    I'm sorry are you being sarcastic or did you even read what I had to say. I knew it would be sold, but I also thought that would be the end of it since it was voluntary. Basically I received a lot of bad ibnformation so I want to know how to straighten this out. If you cannot of any help, please don't offer more pain to my situation.

  4. #4
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: We Surrendered, They Sold Without Notifying Us

    Even though it was a voluntary repossession, you owe the balance/difference of what you owed on the car & what they sold the car for if that is your question.

  5. #5
    Join Date
    Mar 2007
    Posts
    9,096

    Default Re: We Surrendered, They Sold Without Notifying Us

    Quote Quoting caligirl814
    View Post
    I'm sorry are you being sarcastic or did you even read what I had to say. I knew it would be sold, but I also thought that would be the end of it since it was voluntary. Basically I received a lot of bad ibnformation so I want to know how to straighten this out. If you cannot of any help, please don't offer more pain to my situation.
    According to your post, you said you voluntarily relinquished your vehicle.

    Then, you said that no one notified you that the car was going to be sold at auction, you said that you weren't given the option of taking it back and selling it and wondered if all this was illegal.

    I am asking a legitimate question. When your vehicle was voluntarily repossessed, exactly what did you think would happen?

    Your debt had the car as collateral. When you defaulted on the loan, the car was sold to satisfy that debt.

    The sale of the car at auction was legal. You still owe the difference between the debt amount and the car's value at auction.

    Did your friend that told you that auctions were illegal tell you what companies did with the cars they repossessed?

    If you wanted to obtain top dollar for the resale, you should have done it yourself.

  6. #6
    Join Date
    Dec 2008
    Location
    No. California
    Posts
    6

    Default Re: We Surrendered, They Sold Without Notifying Us

    Thanks Betty. We were under the impression that we owed nothing since the account was zeroed out on our credit report and no one contacted us after surrendering the vehicle. But the new credit union is now coming after us for a debt we thougt was behind us.

  7. #7
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: We Surrendered, They Sold Without Notifying Us

    Yes, I'm afraid that the new credit union that purchased the old credit union is now entitled to the balance due between what was still owed on the loan & what the vehicle was sold for.

    Sorry.

  8. #8
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: We Surrendered, They Sold Without Notifying Us

    =caligirl814;270950] We were under the impression that we owed nothing since the account was zeroed out on our credit report
    zeroed on your credit report? Sure would like to see that. Regardless, what is reported is not supportable evidence the debt was satisfied.

    and no one contacted us after surrendering the vehicle.
    yes they did. It just took longer than you expected.

    But the new credit union is now coming after us for a debt we thougt was behind us.
    Well, you're wrong. It is staring you in the face.

    How can I fix this?
    which part?

    about owing the money; pay it

    about what is reported on your credit report; nothing as it appears there is nothing wrong with what is reported.

    if you believe the amount is incorrect, then dispute it. If you believe you do not owe the money, tell them. If/when they sue you, explain to the judge your position. S/he will make the decision.

  9. #9

    Post Re: We Surrendered, They Sold Without Notifying Us

    Hello Caligirl,

    It sounds like the OC (original creditor) didn't follow the rules concerning repossesson in the UCC. California does follow the UCC. Here is the URL to information about Cali's UCC, concerning secured transactions.

    http://www.leginfo.ca.gov/cgi-bin/di...file=9601-9629


    When the creditor repossesses your car he is required to follow certain steps after repossession, according to the UCC. If he does not, he very likely will have to forfeit the deficiency. You are entitled to a Notice of Disposition.

    This document lets you know all the details of the disposition of your car, how and when and where it will be sold. This Notice lets you know how you may redeem your vehicle, or how you can let someone else buy the vehicle.

    You are also entitled to a Written Calculation of Surplus or Deficiency. If they didn't already send you one, you can request it, and they have 14 days to get it to you.

    In your post you indicated that you didn't know what happened to your car, until you got notice of a parking ticket that belonged to the new owners. I would say that if this is the case, that you weren't take through the steps called for in the UCC.

    We are in a similar situation in which we weren't taken through the proper steps, and the first we heard about our car was when we got a letter from a major JDB, (Junk Debt Buyer) who had bought our account and proceeded to collect. They are going to find out it won't be easy as they think to collect, and might even have to forfeit the delinquency. A lawyer told us that when they sue us, to call him.

    Read the material on the website I included above. The UCC is there protect the Creditor and Debtor. When the Creditor does not do what is required, the protection is there for the debtor.

    GOOD LUCK!











    Quote Quoting caligirl814
    View Post
    My question involves an auto loan or repossession in the State of: California
    My husband and I voluntary surrendered a vehicle that was costing us more in repairs than it was worth and purchased another vehicle 2 years ago. It was financed by a credit union was was recently purchased by another credit union. The original credit union sold the vehicle we believe at an auction. Someone told me that this was illegal and that we should have been informed that the vehicle was being sold before hand to give us the option to take it back or sell ourselves. We found out it was sold when the new owner got a parking ticket and the vehicle got towed and the bill came to us. The original credit union never asked us for a dime after I told them the vehilce had been sold without our knowledge and was still in our names. Now after all of this time and the new credit union is telling us we owe a deficiency of $11,000. Does this mean we owe the balance after all of this time. Also, the account shows up on our credit report one month under one account with a balance owed of $0, then not two months later as charged off with a balance owed of $11,000. How can I fix this?

  10. #10
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: We Surrendered, They Sold Without Notifying Us

    It's possible that one of the reasons you didn't hear about the deficiency until the takeover of your original lender was their realization that they had not properly followed the UCC in relation to the sale and deficiency.

    How did this "voluntary repo" work? What did you sign when you "gave back" the car?

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