Title loan place in Alabama suing after vehicle was seized by sheriff

[Court007]

What is the name of your state (only U.S. law)? Florida

I took out a title loan in Alabama on my car in August. In October the car was seized by the Sheriffs office in a writ of execution for a debt on a pre paid credit card that the bank allowed to go beyond the limit of money I had placed on the card. Unable to continue making the payments without a car and way to get around, I quit making the payments on title loan assuming the loan amount would go to collections and stop accruing interest so I could actually pay it off. Now the title loan company has sent me a letter saying to pay in full to avoid litigation...my question is can they sue me with the collateral having been taken and sold at auction, or do they have CPP insurance for these kind of situations?

Also, I received the title back in the mail with no lien holder listed on it after the title loan was taken out...did they perhaps make a mistake in filing the paperwork?

 

[TheGeekess]

What is the name of your state (only U.S. law)? Florida

I took out a title loan in Alabama on my car in August. In October the car was seized by the Sheriffs office in a writ of execution for a debt on a pre paid credit card that the bank allowed to go beyond the limit of money I had placed on the card. Unable to continue making the payments without a car and way to get around, I quit making the payments on title loan assuming the loan amount would go to collections and stop accruing interest so I could actually pay it off. Now the title loan company has sent me a letter saying to pay in full to avoid litigation...my question is can they sue me with the collateral having been taken and sold at auction, or do they have CPP insurance for these kind of situations?

Also, I received the title back in the mail with no lien holder listed on it after the title loan was taken out...did they perhaps make a mistake in filing the paperwork?

Yes, they can sue you for the money you owe them.

 

[Court007]

what happens in judgement if you own nothing

What happens if they sue me & I don't own anything & don't technically work for anyone? I'm a freelancer, so I don't get normal paychecks.

 

[Court007]

Also, as far as having some way to get around, can they do anything to a car I may lease instead of buying? I've already paid more than I borrowed on the title loan in payments made, but I've got to get a vehicle & I know I can't buy one because any judgement would just seize it...And can they do anything to my husbands vehicle?

 

[justalayman]

I've already paid more than I borrowed on the title loan in payments made,

so you thought they didn't charge interest on the loan? Of course you wil pay back more than you borrowed.]

but I've got to get a vehicle & I know I can't buy one because any judgement would just seize it...And can they do anything to my husbands vehicle?

whatever you do, do it fast because if they sue you, getting financed whether it be a loan or a lease will get much harder, that is, if you even qualify now.

 

[Court007]

Yes, obviously I understand there is interest, and I do not doubt that I'll have trouble getting a car loan on my own...neither of these things are the issue or question. I am just trying to find out the best course of action in this situation without going through the whole process of consulting my lawyer. Title loans are a terrible idea & after a very bad year I'm simply looking for advice on how to go about fixing this situation without the obvious solution of just pay them off immediately, which would be wonderful, but just isn't possible today.

 

[justalayman]

Yes, obviously I understand there is interest, and I do not doubt that I'll have trouble getting a car loan on my own...neither of these things are the issue or question. I am just trying to find out the best course of action in this situation without going through the whole process of consulting my lawyer. Title loans are a terrible idea & after a very bad year I'm simply looking for advice on how to go about fixing this situation without the obvious solution of just pay them off immediately, which would be wonderful, but just isn't possible today.

well, actually, you asked but 2 questions:

Now the title loan company has sent me a letter saying to pay in full to avoid litigation...my question is can they sue me with the collateral having been taken and sold at auction, or do they have CPP insurance for these kind of situations?

the first has been answered; yes

the second; irrelevant. Insurance is to protect them, not you. Whether they lender sues you or the insurance company sue you, if the amount of money owed is worth the trouble, it is likely somebody is going to sue you.

 

[Zigner]

What makes you think that you can afford to lease a vehicle? And, if if you delude yourself in to thinking you can afford to lease, how do you plan to convince a dealership to lease to such a poor credit risk as yourself?