Boyfriend took advantage, How does she recoup?

[Capone]

Massachusetts

My daughter was living with a boyfriend for 5 years or so, he needed a vehicle but had poor credit so my daughter helped him out and used her credit card, he signed a promissary note, saying he will pay back, the monthly payments. They split up recently and he got married, left her with the payments, How are the chances of getting this jerk to pay, he did this once before to another girl.
Don't really have the money for a lawyer, unless I knew for sure the case could be won, for more than the cost of the vehicle, and then some. How would the chances be in small claims court?

 

[JETX]

Since she has a signed promissory note, I would say the chances of winning a judgment would be pretty good. The only issue would be what proof could he present that the debt has been paid???

Sounds to me like the only decision needed now is to determine if she will be able to enforce the judgment against him.

 

[Capone]

The only problem I see, is that when she did loan him the money from her credit card to purchase the vehicle, he has the title to the vehicle and it is in his name. He made some payments, but then stopped and the last payment he also indicated that he will pay her the rest, on a certain date.

 

[JETX]

Ownership of the vehicle is not important and is secondary to the issue. She has a signed promissory note for the loan. What he did with the money once he had it is not relevant to the issue of the loan.

 

[Capone]

A friend told me to have her stop payments on the vehicle and explain the situation to the credit company, maybe they will repossess the vehicle. Wouldnt this hurt her credit?

I am going to write a letter to him and his parents hoping they can instill some sense in him, if this doesnt work, then I will be filing in small claims court

 

[JETX]

Wow, I sure have been confused a lot lately....

Your original post said that the car was paid for with your daughters credit card ("he needed a vehicle but had poor credit so my daughter helped him out and used her credit card").

Now, your latest post says, "A friend told me to have her stop payments on the vehicle and explain the situation to the credit company, maybe they will repossess the vehicle. Wouldnt this hurt her credit?"

My questions:
1) If this car was purchased on a credit card as originally stated, how do you believe the credit purchase is now tied to a car??
2) If the car was purchased on a credit card, what makes you think that stopping payment on the card would get the car repossessed??

If the car was purchased on a credit card in your daughters name, the only person that would be hurt in 'stopping payments' would be your daughter. There is NO correlation (nor explanation) that would have the credit card company even consider going after the car or anyone else. Your daughter is the liable party.

Sounds to me like your friend is either very confused or is hitting the 'happy juice'.

 

[Capone]

Okay Halket, here's the real deal sorry I confused you, but I guess she confused me........etc. etc.
I guess she took out a fast check loan from the bank and the bank gave her a payment book, she had him sign a promissary note that she typed up for re-payment of the loan....(because the loan is in her name) she then loaned him the money to purchase the vehicle, which is in his name, bill of sale, and title.
Would she have a good chance of winning this one,in court?
Again I'm sorry for the confusion and hope this is clearer.

 

[JETX]

First, thank you for the clarification. Though some of the specififics have changed (lender instead of credit card, etc.), the principal is still the same.

She loaned someone money and the borrower signed a promissory note. Those are the ONLY facts to be considered. What the borrower did with the money is not relevant. (Also, the fact that there is NO link between the loan and the car purchase, there cannot be any 'reposession' that you asked about earlier. That is because the car is not security for the loan, in fact there is NO link between them.)

Have your daughter take the borrower to court solely on his breach of contract (failure to repay the loan as agreed in the promissory note).

Now, your 'key' issues are:
1) Since she 'made up' this promissory note, is it written in accordance with your states laws to be binding???
2) When/If she wins, does the debtor have any seizable assets that could be used to enforce the judgment if he fails to pay??

 

[Capone]

I don't know if the note is in accordance with the State Law, where can I find that out? As far as the debtor having any sizeable assets I don't think so, other than the vehicle.

 

[JETX]

Two ways to test the legality of the agreement: one is to have an attorney review/approve it and the other is to try to use it in court.

As to the issue of assets, if his only asset is the vehicle, you need to check and see if that is exempt from seizure by your state laws (most states do exempt the vehicle). Call your local sheriff and ask for the process or service division.

Sounds like someone is going to get an expensive life lesson.