Legal Question in Credit and Debt Law in California

Volentary Repo

About 1.5 years ago I was talked into signing for my nephew to buy a car from a dealer, which is no longer in business, they said my name would be on the contract for 8 months and after that my nephew could have his name on it as long as he shows proof he was making the payments and not me. Well my nephew only made two payments, so I took the car from him and voluntarily gave it up for repo. The company sold the car at an auction for half of what was owed and now they are coming after me threatening wage garnishment for the balance. I have pleaded with my nephew to make a payment plan or else I would take him to court. Do I have any grounds for suing my nephew?? Since he was to be making the payments?? Can they go after my wages??

HELP!!


Asked on 3/22/04, 1:19 pm

1 Answer from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Volentary Repo

We get really depressing amounts of mail from folks like you who got suckered into co-signing. You did two really dumb things. The second was allowing the car to be repoed, you probably would have done better by selling the car yourself, the repo auction likely as not was crooked. You are now left holding the bag. Sue your brother in small claims court (if less than $5000) and don't hold your breath waiting to get paid. Sure, they can go after your wages if they sue you and win (they will). Hey, you co-signed. If you can prove the auction was unfair or rigged (start by comparing the auction price with the blue book value) you might be able to sue the repo co. under the Fair Debt Collection Practices Act, this has been done but I wouldn't count on it happening for you.

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Answered on 3/22/04, 1:32 pm


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