Debt collector want to take everything i own

[Mythryndir]

What is the name of your state? Colorado

Ok, my wife and i have a 2001 Chevy Camaro which we have have made 32 of 60 payments on. We have hit financial difficulties and are unable to pay on the vehicle right now. The finance company told us they there is no grace period for tardy payments on this loan, that they are coming to repo the vehicle. then they told us that in colorado we are not protected and that they would come take our other vehicle (financed through a different company) to pay off the other loan sell that vehicle in order to satisfy the debt. We owe 11k on the camaro, it is valued at 5k max. We owe 23k on the second vehicle, valued at 14k max. This makes absolutely no sense to us what so ever that they would inccur this additional debt as the only thing they would accomplish is to make certain that we have NO means at all to even attempt to satisfy any debt. Our question mainly is to the legality of a finance company to take anything they want from us in an effort to recieve payment for the Camaro. Also, we have recorded the conversation does this constitute harrassment?What is the name of your state?

 

[justalayman]

they cannot take anything other than what they have a lein on unless the courts allow it and that will happen only after you are sued and lose.

the only reason they can take the vehicle they have a lein on due to late or failure of payment is you have contractually agreed to it.

 

[GoingGrey]

Sounds fun NOT...

First, I think you need to talk to a lawyer ASAP. Many lawyers will give you a free consultation. Go see one IMMEDIATELY.

Second, I think it sounds like you might have a Fair Debt Collection Practices Act violation. Their threatening to take your other car is definetly a violation, their threatening to repo your first car MIGHT - I say MIGHT - be a violation. Threatening actions, especially threatening actions that they do not intend to follow through on, are violations.

Make sure you start keeping records of every call/letter/contact you have with the finance company and/or any collection companies.

Third, they generally can't do anything until they sue you. Don't quote me on this - I've never had a car repossessed - but I believe they have to first sue you and get a judgment against you for the outstanding balance on the loan. Then, if they chose to do so, they can repossess the car. You REALLY do not want that to happen.

When a car is repossessed, they sell the car at auction, for EXTREMELY low amounts. Then, whatever the balance on the loan is after the auction, they go after you for. Simply repo'ing the car doesn't get rid of the debt.

This happened to my ex-boyfriend. He had a Jeep, paid $9,000 for it. Owed $6,000 on it. Voluntarily returned the car to the bank - he didn't wait for the repo men to show up at the door. At auction, the Jeep sold for $1,400, leaving about $4,600 due on the Jeep. FIVE YEARS LATER, the lender sued him for the balance plus 21% interest, costs, attorney fees, etc., totaling nearly $13,000. Being stupid, he failed to go to court and they got a default judgment against him. Eventually, they garnished his wages to the tune of over $16,000.

This really happened. Don't let it happen to you.

You do have options. Keep calling the finance company and keep trying to get them to work with you. Contact other banks/lenders and see about refinancing the car loan. Contact a lawyer, and possibly consider filing bankruptcy - you will likely lose the vehicle, but the outstanding balance will be cleared.

PAY THEM. Whatever you can, PAY THEM. If you pay them, even if it is less than the minimum payment, they MIGHT - BIG MIGHT - hold off on repoing the car or suing you. With each payment, include a letter saying you are experiencing financial difficulties and plan on being caught up by such-and-such date, and are including a partial payment please accept it blah blah blah, whatever it takes to get them to hold off on legal actions.

But whatever you do, GO TALK TO A LAWYER.

Hope this helps!

 

[TiredOfAbuse]

The finance company told us they there is no grace period for tardy payments on this loan, that they are coming to repo the vehicle. then they told us that in colorado we are not protected and that they would come take our other vehicle (financed through a different company) to pay off the other loan sell that vehicle in order to satisfy the debt.

The finance company is pretty much correct about there being no grace period. Late is late, and according to the contact you signed, they can and may repo the vehicle pertaining only to the debt in question.

Our question mainly is to the legality of a finance company to take anything they want from us in an effort to recieve payment for the Camaro.

They cannot just take anything they want from you. There is a process they have to go through and it takes time. First they will (as you have already indicated) scare and threaten you into making a payment or coming current with your auto loan. After that, they will work to repo the vehicle.

Once the vehicle is in their posession, they will notify you in writing as to when and where the sale of the vehicle will take place. You are most often able to pick up any loose property from the car before it is sold.

After the sale of the vehicle, they will hold you responsible for the difference of the loan value minus what was obtained through the sale of the vehicle at auction. You will then receive the sales statement in the mail and be asked to pay the difference owed.

At this point they can choose to pursue you in court for the difference! You will have warning of this as they will have to serve you with papers or give notice. Once in court, they will seek a judgement. With the judgement, it is possible that they can look at Wage Garnishment (if your State laws allow it), attaching a lein to your mortgage, taking personal property (if you do not file exemptions with the court IF you are able to do so at that time).

Now is the time to look at correcting your situtuation. Please know that it would take awhile for them to get anything past repo'ing the car in the next month or two, so you have time.

Also, we have recorded the conversation does this constitute harrassment?

If this were a collections agency, you would be in luck. Unfortunately you said the Original Creditor told you this. True or not, they can get away with making false statements like this. The FDCPA does not apply to Original Creditors - just Collections Agencies, Collections Law Firms and Junk Debt Buyers. Just know that if they repo a vehicle they do not have a lein on (nor a judgement, ect..) then they are stealing and you can get your local law enforcement involved.

If you would like to know your rights and where you stand, please take a look at this link...

http://www.coloradolegalservices.org/co/index.cfm

My best advice would be: Not all is not lost! If you can, come current. Talk to the lender and see if you can work something out. If you talk to a retard that just wants to threaten, keep calling for someone new, or ask for their supervisor until you get someone intelligent.

Intelligent meaning they will have a good grasp of what customer service is, regardless of their willingness to work with you or not.

Having a late tick on your credit report is a lot better then a reposession or a judgement (down the road).

Good luck!

TiredOfAbuse

 

[annajosie]

I am confused on this one. I know that the creditor can repossess their car if the debtor does not pay. That just makes sense. What I don't understand is how can this creditor take the debtor's other car that is financed with a different company?

They would have to pay off the other lender and then try to sell the second vehicle, so what would they gain?

If the debtor owes more than the second vehicle is worth, then what would be the point in doing something like that? Obviously the debtor does not have any non exempt equity in this vehicle.

 

[TiredOfAbuse]

I know that the creditor can repossess their car if the debtor does not pay. That just makes sense.

Correct, they can repo.

What I don't understand is how can this creditor take the debtor's other car that is financed with a different company?

Incorrect, they can only take the vehicle pertaining to the car loan in question/default.

If the debtor owes more than the second vehicle is worth, then what would be the point in doing something like that? Obviously the debtor does not have any non exempt equity in this vehicle.

There is no point because they cannot take the other vehicle. The OP indicates the other car was financed through a different company. Only that different company could take the 2nd car if that loan was in default as well.

If the other car (or any other property) was, lets say, paid off - then the only way to take that asset would be once a judgement is entered against the defendant. It has not gotten that far (yet). This does not affect housing or real estate as those assets are governed under yet another set of rules.

Hope you aren't confused anymore!

TiredOfAbuse

 

[annajosie]

Thanks, TOA

I figured that was right, but with the laws changing all the time and some creditors using whatever they can think of to frighten people, I was just wondering about this.

 

[TiredOfAbuse]

I agree that the laws change all the time, but consider this:

Corporate America holds great sway in the law making/changing process. Would they (knowingly) allow for a situation where there would be a conflict of interest between two lenders?

I don't think they would.

The OP's second car is ok, that is unless it goes into default as well.

TiredOfAbuse

 

[acmb05]

There is no point because they cannot take the other vehicle. The OP indicates the other car was financed through a different company. Only that different company could take the 2nd car if that loan was in default as well.

Even if it was finance thru the same company they could not take it unless it was in default also.

 

[TigerD]

The thread was a year old -- I'd say the OP is beyond help at the moment.

 

[Zigner]

The thread was a year old -- I'd say the OP is beyond help at the moment.

July-07 to now is only 6 months (just calling you on the math, not the conclusion)

 

[TigerD]

July-07 to now is only 6 months (just calling you on the math, not the conclusion)

lol -- I caught that, but didn't have time to edit it. I knew someone was going to call me on it.

ah well. No point in editing it now.

 

[acmb05]

lol -- I caught that, but didn't have time to edit it. I knew someone was going to call me on it.

ah well. No point in editing it now.

OOOps. I guess I should look at the original thread date from now on instead of the last post.