Legal Question in Consumer Law in California
Repo Deficiencies
The finance company for my automobile requested that I turn in my car after dismissing a Chapter 13 in April, 2001. I had them pick up the car at an agreed upon location. In January 2002, I applied for a refi on my home. They noticed the repo on my credit report and asked if I was making payments on the deficiency. I told them that no one had ever contacted me about a deficiency. The mortgage company called the finance company and inquired about the status. Now the finance company for the car is requiring me to pay $11,000. No one had ever contacted me until the mortgage company called nine months later. Is this right?
3 Answers from Attorneys
Re: Repo Deficiencies
No, it is not legal. The finance company is required to 1st give you notice of intent to dispose of motor vehicle at the last known address they have for you, and tell you you have 15 days time to redeem the motor vehicle. If they did not do this, then they cannot claim a deficiency. Also, the finance company is required to give you 30 days notice under the fair debt collection practices act--which they did not. Note that the finance company will lie and say they gave you the notice of intent to dispose of motor vehicle--they will say they sent it to you in the mail. But, they probably do not know about the Fair Debt Col. Practices Act--thus, you can trap them in their own web. I highly recommend you do not try to handle this yourself. Use a competent lawyer who knows about the Automobile Sales Finance Act and the Fair Debt Col Practices Act.
Re: Repo Deficiencies
I agree with Mr. Mccoy about the post- repossession notice. Insist on a copy. I disagree about the fair debt collection practices act, however. A finance company is not subject to the FDCPA, because creditors have an exemption. Also, there is no 30 day notice required before attempting to collect a debt under the Act. There is a 30 day dispute period, where the consumer can dispute the debt, and the debt collector must cease debt collection activity if the consumer disputes, while it verifies the debt. That is not quite the same as pre-collection notice.
Re: Repo Deficiencies
Yes, it happens.
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