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Debt Collector

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bgobanion

Junior Member
My friend decided to buy my pick up for $2000 in 4 payments. She gave me the first payment of $500 and before she make the second payment she totaled the vehicle. She sent me a copy of the vehicle proof of insurance but she didn't make the premium payment. Now, the debt collection agency is requesting payment of almost $100,000 for damages (freeway was shut down due to hazmat clean up). I don't want this debt on my credit report. Aside from lawyer up, what should I do?
 


Ohiogal

Queen Bee
My friend decided to buy my pick up for $2000 in 4 payments. She gave me the first payment of $500 and before she make the second payment she totaled the vehicle. She sent me a copy of the vehicle proof of insurance but she didn't make the premium payment. Now, the debt collection agency is requesting payment of almost $100,000 for damages (freeway was shut down due to hazmat clean up). I don't want this debt on my credit report. Aside from lawyer up, what should I do?
Was the vehicle title in your name?
If so, you can legally be held responsible. Time for you to sue your friend for the damages she caused.
 

adjusterjack

Senior Member
Then you basically owned the car and rented it to her.

However, Montana has no vicarious liability statute so an owner is not liable for the driver's accident unless the injured or damaged claimant can prove negligent entrustment which does not appear to be the case here.

Unfortunately, I have no clue as to how you would get the collection agency off your back.

You would be wise to consult a liability defense attorney. Paying something for an official looking letter explaining that to the collection agency might do it.

Meantime, you should be monitoring all three of your credit reports in case it does show up. You'll probably need to pay the same attorney to handle that.

Frankly, selling a car that way was a bonehead mistake. Getting out from under might cost you some, especially if you get sued for it and have to spend money on a defense attorney.
 

bgobanion

Junior Member
Then you basically owned the car and rented it to her.

However, Montana has no vicarious liability statute so an owner is not liable for the driver's accident unless the injured or damaged claimant can prove negligent entrustment which does not appear to be the case here.

Unfortunately, I have no clue as to how you would get the collection agency off your back.

You would be wise to consult a liability defense attorney. Paying something for an official looking letter explaining that to the collection agency might do it.

Meantime, you should be monitoring all three of your credit reports in case it does show up. You'll probably need to pay the same attorney to handle that.

Frankly, selling a car that way was a bonehead mistake. Getting out from under might cost you some, especially if you get sued for it and have to spend money on a defense attorney.
Thank you for taking your time to respond.

I got a hold of her mom today and she texted me "this is taken care of" after I sent her the collection letter (I guess my friend was severely injured from the accident). Can I use the text messages in court as evidence that they are willing to pay for the damages?
 

adjusterjack

Senior Member
Thank you for taking your time to respond.

I got a hold of her mom today and she texted me "this is taken care of" after I sent her the collection letter (I guess my friend was severely injured from the accident). Can I use the text messages in court as evidence that they are willing to pay for the damages?
"this is taken care of" is meaningless.
 

Ohiogal

Queen Bee
Then you basically owned the car and rented it to her.

However, Montana has no vicarious liability statute so an owner is not liable for the driver's accident unless the injured or damaged claimant can prove negligent entrustment which does not appear to be the case here.

Unfortunately, I have no clue as to how you would get the collection agency off your back.

You would be wise to consult a liability defense attorney. Paying something for an official looking letter explaining that to the collection agency might do it.

Meantime, you should be monitoring all three of your credit reports in case it does show up. You'll probably need to pay the same attorney to handle that.

Frankly, selling a car that way was a bonehead mistake. Getting out from under might cost you some, especially if you get sued for it and have to spend money on a defense attorney.
If there was no insurance on the car that is an issue. He was responsible for insuring it. Apparently the premium wasn't paid. Therefore because it was not insured by him, it could be considered negligent entrustment. As she didn't have insurance either.
 

adjusterjack

Senior Member
If there was no insurance on the car that is an issue. He was responsible for insuring it. Apparently the premium wasn't paid. Therefore because it was not insured by him, it could be considered negligent entrustment. As she didn't have insurance either.
No. The lack of insurance has nothing to do with negligent entrustment.

The Montana Supreme Court relies on the definition of negligent entrustment as found in the Restatement of Torts 2d Section 390:

"One who supplies directly or through a third person a chattel for the use of another whom the supplier knows or has reason to know to be likely because of his youth, inexperience or otherwise, to use it in a manner involving unreasonable risk of physical harm to himself and others whom the supplier should expect to share in or be endangered by its use, is subject to liability for physical harm resulting to them." Bahm v. Dormanen, 543 P. 2d 379 - Mont: Supreme Court 1975
https://scholar.google.com/scholar_case?case=17450818353661940636&q=negligent+entrustment+of+an+automobile&hl=en&as_sdt=4,27

The lack of insurance is certainly an offense for which the owner can be penalized with fines and possibly license suspension but it does not make him liable for the accident caused by the driver.
 

bgobanion

Junior Member
No. The lack of insurance has nothing to do with negligent entrustment.

The Montana Supreme Court relies on the definition of negligent entrustment as found in the Restatement of Torts 2d Section 390:



https://scholar.google.com/scholar_case?case=17450818353661940636&q=negligent+entrustment+of+an+automobile&hl=en&as_sdt=4,27

The lack of insurance is certainly an offense for which the owner can be penalized with fines and possibly license suspension but it does not make him liable for the accident caused by the driver.
Will a notarized written agreement from the driver taking responsibility of the damages good enough evidence to submit to the debt collector? I don't want the collection agency come after me now that the person who did the damages is taking responsibility.
 

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