Legal Question in Credit and Debt Law in California

Repossessed auto liability

Situation: Two years ago my 25 year old son surrendered his 1994 Honda to his credit union with approximately 2 yrs remaining on the contract.

Obviously, the credit union sold the car for less than the amount owed.

Consequently a collection agency has been assigned and is currently is trying to collect the outstanding balance.

It is my understanding that when the credit union took possession of the vehicle, they then also assumed all legal obligations.

Question: Is my son liable for the outstanding balance, although he had no opportunity to participate in the decision about how the vehicle would be disposed of by the credit union?

Whether he is liable for the lost revenue to the credit union or not, will you please cite the California state statute numeber that applies.

Thank you,


Asked on 12/21/00, 6:53 pm

1 Answer from Attorneys
Ken Koury Kenneth P. Koury, Esq.

Re: Repossessed auto liability

Yes, he is responsible for the balance of the loan on the vehicle less whatever they sold the vehicle for. There's no need to cite a statute. All he needs to do is read the contract that he signed.

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Answered on 12/27/00, 3:03 am


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