Deficiency judgment

[adienpryde]

What is the name of your state?Minnesota

We recently voluntarily returned our vehicle to our finance company for repossession in early March. Early June the finance company sold it and informed us that we would need to pay back the difference of the amount we owed and the amount they were able to sell it for. We paid a payment of $200.00 on the 2nd of July and we thought we would look into whether this was right. What we found out was a few things and was wondering if it should be pursued with a lawyer or someone else.

We have not received anything in the form of notice of intent to dispose of a repossessed or surrendered motor vehicle. Looking on your website I see that we should have gotten this. If I am reading this right, are we entitled to not have to pay a deficiency judgment? We were told that if we didn’t it would turn up on our credit as a judgment and they may file legal papers against us for this.

 

[Tayla]

Based on the data you gave, here is some information. : The return of a vehichle voluntarily whilst still under a loan, does not wave the rights of the lien holder to follow thru on litagations. The funds owed may still be persued. A judgement can be sought. In your willingness to pay the difference it shows responsibility. It would be wise to set up payments to satisfy the debt. Get such agreement in writing. Most times banks just want the funds due. The bank would have to have a record for the amount the car was auctioned off or sold for. Definitely retain all records of correspondence or payments made.

 

[JETX]

We have not received anything in the form of notice of intent to dispose of a repossessed or surrendered motor vehicle. Looking on your website I see that we should have gotten this.

That requirement (notice of intent) is not required in all states. And though MN is one of the states, MN has an amount limit ($3000) on the failure to provide notice. This is covered in the following MN Statute:
"325G.22 Restrictions on deficiency judgments.
Subdivision 1. If the seller or lender repossesses or voluntarily accepts surrender of personal property in which the seller or lender has a security interest arising out of a consumer credit transaction and the aggregate amount of the credit extended in the transaction was $3,000 or less, the buyer is not personally liable to the seller or lender for the unpaid balance of the debt arising from the consumer credit transaction, and the seller or lender is not obligated to resell the collateral."
Source: http://www.revisor.leg.state.mn.us/stats/325G/22.html

If I am reading this right, are we entitled to not have to pay a deficiency judgment?

It would appear from the above, unless the aggregate amount of the credit extended in the transaction was $3,000 or less, no.

 

[adienpryde]

That requirement (notice of intent) is not required in all states. And though MN is one of the states, MN has an amount limit ($3000) on the failure to provide notice. This is covered in the following MN Statute:
"325G.22 Restrictions on deficiency judgments.
Subdivision 1. If the seller or lender repossesses or voluntarily accepts surrender of personal property in which the seller or lender has a security interest arising out of a consumer credit transaction and the aggregate amount of the credit extended in the transaction was $3,000 or less, the buyer is not personally liable to the seller or lender for the unpaid balance of the debt arising from the consumer credit transaction, and the seller or lender is not obligated to resell the collateral."
Source: http://www.revisor.leg.state.mn.us/stats/325G/22.html


It would appear from the above, unless the aggregate amount of the credit extended in the transaction was $3,000 or less, no.

So if we owed $3400.00 of deficency after the van was sold and we have not recieved any paperwork, we won't be personally liable for it?

 

[JETX]

So if we owed $3400.00 of deficency after the van was sold and we have not recieved any paperwork, we won't be personally liable for it?

Not correct. I interpret the statute to mean that a deficiency can not be enforced on an ORIGINAL loan that equal or less than $3,000. Your loan was clearly in excess of that (as your current debt is also), making the exemption NOT applicable to you. The creditor is under NO obligation to notice you..... and you are liable for the deficiency.

 

[adienpryde]

So I just go by their verbal word as to how much they sold it for and how much our payments need to be?

 

[JETX]

So I just go by their verbal word as to how much they sold it for and how much our payments need to be?

Who said that you didn't have the right to an accounting of the amount claimed?? Ask them in WRITING to provide it to you.