Re
osting Creditor Suing friend
What is the name of your state? GA
friend of mine told me that she was being sued by the company that repo'd her car in May '02, for the balance of the deficiency. She stopped paying them after she notified them that they were not reporting the information correctly on her credit report. The balance on the credit report showed $8000, but she only had a $4700 deficiency and had made payments to bring it down to $3200. As we got into the discussion, some of the information she gave me led me to believe that this was a wrongful repo from the begining.
When the car was repo'd, she was about 35 days past due. She was told that if she paid $1250 (past due, next payment and repo charges), she could retrieve her car. She sent the amount requested by WU quick collect the next day. Once they received the payment, they asked her to provide 7 more references, which she did. They told her that she could go and pick up the vehicle which was across town. After she was given the keys, had gotten in the car and was proceeding off the lot, she was stopped by the repo man and told that the creditor had just called and said that she could not take the car. She was of course very angry and immediately called them and they stated that they did not feel the references were good enough and they were not returning the car. She argued and the police were called and she was told to leave.
The issue I have is that they accepted her payment. She was given an amount to bring her account current and she paid it within 24 hours. She had to call and argue with them to get the money back, but after about a week, they did return the $1250. They did not allow her to give anymore references. She had never tried to conceal the car, nor was she notified that she was in danger of repossession, but I am aware that once you are one day late, you are in default. Would this not be a wrongful repossession? She just purchased a new car and her interest rate is 21% because of the previous repo and the balance due (which was incorrect).
Am I correct in thinking that the initial repo had violated her consumer rights? Once they accepted the payment, would that not be an agreement of some sort to reinstate the loan? Also, did the erroneous reporting on the credit report cause her financial harm and does she have recourse to counter sue for this? If the initial repo was wrongful, does the statute of limitations on the "wrongful repossession" run from the date that the car was repo'd or from the date when she discovered the injury?
The FCRA states:
§ 617. Civil liability for negligent noncompliance [15 U.S.C. § 1681o]
(a) In general. Any person who is negligent in failing to comply with any requirement imposed under this title with respect to any consumer is liable to that consumer in an amount equal to the sum of
(1) any actual damages sustained by the consumer as a result of the failure;
(2) in the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney's fees as determined by the court.
Would this apply in her situation? Can she file a countersuit in her answer for any of the previous issues?
Fortunately, she does have a file with the proof showing how much she owed at the time of repo, the original sales contract, the WU quick collect reciept for the fees requested and other assorted documents. She has not been served yet, but has asked the servicer to bring the paperwork to her at work tomorrow. I would appreciate any answers that can help with this matter. She wants to handle this herself because she cannot afford an attorney.
Thank you in advance.
osting Creditor Suing friendWhat is the name of your state? GA
friend of mine told me that she was being sued by the company that repo'd her car in May '02, for the balance of the deficiency. She stopped paying them after she notified them that they were not reporting the information correctly on her credit report. The balance on the credit report showed $8000, but she only had a $4700 deficiency and had made payments to bring it down to $3200. As we got into the discussion, some of the information she gave me led me to believe that this was a wrongful repo from the begining.
When the car was repo'd, she was about 35 days past due. She was told that if she paid $1250 (past due, next payment and repo charges), she could retrieve her car. She sent the amount requested by WU quick collect the next day. Once they received the payment, they asked her to provide 7 more references, which she did. They told her that she could go and pick up the vehicle which was across town. After she was given the keys, had gotten in the car and was proceeding off the lot, she was stopped by the repo man and told that the creditor had just called and said that she could not take the car. She was of course very angry and immediately called them and they stated that they did not feel the references were good enough and they were not returning the car. She argued and the police were called and she was told to leave.
The issue I have is that they accepted her payment. She was given an amount to bring her account current and she paid it within 24 hours. She had to call and argue with them to get the money back, but after about a week, they did return the $1250. They did not allow her to give anymore references. She had never tried to conceal the car, nor was she notified that she was in danger of repossession, but I am aware that once you are one day late, you are in default. Would this not be a wrongful repossession? She just purchased a new car and her interest rate is 21% because of the previous repo and the balance due (which was incorrect).
Am I correct in thinking that the initial repo had violated her consumer rights? Once they accepted the payment, would that not be an agreement of some sort to reinstate the loan? Also, did the erroneous reporting on the credit report cause her financial harm and does she have recourse to counter sue for this? If the initial repo was wrongful, does the statute of limitations on the "wrongful repossession" run from the date that the car was repo'd or from the date when she discovered the injury?
The FCRA states:
§ 617. Civil liability for negligent noncompliance [15 U.S.C. § 1681o]
(a) In general. Any person who is negligent in failing to comply with any requirement imposed under this title with respect to any consumer is liable to that consumer in an amount equal to the sum of
(1) any actual damages sustained by the consumer as a result of the failure;
(2) in the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney's fees as determined by the court.
Would this apply in her situation? Can she file a countersuit in her answer for any of the previous issues?
Fortunately, she does have a file with the proof showing how much she owed at the time of repo, the original sales contract, the WU quick collect reciept for the fees requested and other assorted documents. She has not been served yet, but has asked the servicer to bring the paperwork to her at work tomorrow. I would appreciate any answers that can help with this matter. She wants to handle this herself because she cannot afford an attorney.
Thank you in advance.