Legal Question in Credit and Debt Law in California
Auto loan debt
I was in an accident, and my insurance would not cover the accident. My bank told me that they didnt have the title. They referred me to a collection agency, who has hired an attorney. We were just served today. I still have the vehicle in my drive way.
1. Can they garnish my wages or tax returns.
2. Would I be able to conter sue them for storage of the van for the past 2 years.
3.If the insurance commisioner ruled that the case could go either way.
What should we do?
1 Answer from Attorneys
Re: Auto loan debt
I am a little confused by this. Why wouldn't your insurance cover the damage to your car? That would be a key question to have answered. And, assuming you did not have insurance, the bank usually has "forced placed" coverage to cover the amount of the loan. It sounds like something is missing.
However, assuming you really had no insurance coverage, here are some answers:
1. They could garnish wages if they get a judgment.
2. You can cross-complain, but I dont know what your argument would be here.
3. This really makes no sense. If a DOI complaint was filed, there has to be some resolution. I have never seen the DOI rule that a case could go either way.
It sounds like you should talk to an attorney who knows insurance law at this point. You can read about insurance law at my blog, www.calpiblog.com and about debt collection issues at my debt blog, www.californiadebtblog.com
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