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Repo laws

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Olimom

Junior Member
What is the name of your state (only U.S. law)? FL

We had a truck, financed and owned originally in CT thru a CT credit union. We let it get repoed due to financial difficulties. We got notice today it was sold.

However, the $ amount was really low. So I looked, and according to CT law, it was definitely sold for less than fair market value, but they are claiming the difference between the loan value and the sale value. And, they didn't provide notice to us of the sale prior to it being sold.

If they didn't provide notice of the sale, can they still collect the deficiency? And if they can still collect, how do I argue the dollar amount with them? (Fair market value is $11k, they sold it for $7K, original loan was for $28K but ballance was $21K) I'm not even sure which laws apply here- CT (because the bank and title were issued in CT) or FL, because we live in FL now.
 


Some Random Guy

Senior Member
Fair market value is what they can get for it. In all likelihood they sold it at an auto auction facility which sells hundreds of cars per day. Prices there are pretty cheap and are the wholesale prices that used car dealers purchase their cars at. You should not expect the bank to put an ad in the paper for each vehicle and babysit it for weeks/months to get local consumer to consumer pricing.

$7k auction price for a car that sells for as much as $11K at a used car dealership sounds about right. Also, the sales price likely includes a $250-$300 reduction for the auction facility.
 

Olimom

Junior Member
CT law

Cite the CT law.
Sec. 36a-785. ....The holder of the contract shall give the retail buyer not less than ten days' written notice of the time and place of any public sale, or the time after which any private sale or other intended disposition is to be made, either personally or by registered mail or by certified mail receipted for on mailing directed to the retail buyer at his last-known place of business or residence. The holder of the contract may bid for such goods at any public sale. The proceeds of the resale shall be considered to be either the amount paid for such goods at such sale or the fair cash retail market value of such goods at the time of repossession, whichever is the greater, except as otherwise provided in subsection (g) of this section.

**************(f) Deficiency on resale. Notwithstanding that the proceeds of the resale are not sufficient to defray the actual and reasonable expenses thereof, and also such actual and reasonable expenses of any retaking and storing of such goods and the balance due under the contract, the holder of the contract may not recover the deficiency from the retail buyer or any surety or guarantor for him, or from any one who has succeeded to the obligations of such retail buyer, except as provided in subsection (g) of this section.

(g) Fair market value. If the goods retaken consist of a motor vehicle the aggregate cash price of which was more than two thousand dollars, the prima facie fair market value of such motor vehicle shall be calculated by adding together the average trade-in value for that motor vehicle and the average retail value for that motor vehicle and dividing that sum by two. Such average trade-in value and average retail value shall be determined by the values as stated in the National Automobile Dealers Association Used Car Guide, Eastern Edition, as of the date of repossession. If the goods retaken consist of a boat the aggregate cash price of which was more than two thousand dollars, the prima facie fair market value of such boat shall be calculated by adding together the average trade-in value for that boat and the average retail value for that boat and dividing that sum by two. Such average trade-in value and average retail value shall be determined by the values as stated in the National Automobile Dealers Association Appraisal Guide for Boats, Eastern Edition, as of the date of repossession. In the event that the value of such motor vehicle or boat is not stated in such publication, then the fair market value at retail minus the reasonable costs of resale shall be determined by the court. The prima facie evidence of fair market value of such motor vehicle or boat so determined may be rebutted only by direct in-court testimony. If such value of the motor vehicle or boat is less than the balance due under the contract, plus the actual and reasonable expenses of the retaking of possession, the holder of the contract may recover from the retail buyer, or from anyone who has succeeded to his obligations, as a deficiency, the amount by which such liability exceeds such fair market value, as defined in this subsection. If the actual resale price received by the holder exceeds such fair market value, as defined in this subsection, the actual resale price shall govern.
 

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