Legal Question in Credit and Debt Law in Georgia

Re: Buy Here Pay Here Car Lot

Before we get to what the dealer can do to you, let�s first take a look at what you may be able to do to it.

You do not say whether or not you bought the car new or used. If you bought the car new, you may have rights under the Georgia Lemon Law. If the car was new, do not walk but run to a phone and call an attorney to assist you.

Your rights are more limited if the car was a used car. Federal law requires that you be informed if the car was sold with or without a warranty. Most dealers sell used cars �as is� without any warranty protection and there should have been a window sticker that said just that. If there was a warranty of any sort or if the original manufacturer warranty has not run out (time and/or mileage), then you might have rights under normal warranty law or the Magnuson-Moss Warranty-Federal Trade Commission Improvement Act.

Last, but not necessary least, if any fraud on the part of the dealer accompanied the deal, then you might have rights under fraud laws or the Georgia Fair Business Practices Act.

Now to answer your specific questions: It depends on the documents you signed. Usually, a car purchaser who is paying over time signs an installment sale contract. The contract specifies the amount of the loan, the interest, the length of the loan and remedies that are available if the purchaser defaults on the loan. Typical on default the entity that financed the loan has the right to reposes the car and to sell it. If the car sells for less than what is still owed on the loan, the remaining amount still owed (the deficiency) can be collected from the purchaser. There are explicit rules that must be followed in order to allow the deficiency to be collected from the purchaser. One of the rules is proper notice to the purchaser of the impending sale, notice that the deficiency can be collected from the purchaser and notice of the right for the purchaser to buy the car back (at the full amount due). It is impossible to tell if the notice you received meets the requirements that allow for a deficiency to be collected. A lawyer would have to review the notice.

As to reports to credit bureaus, yes they can be made. You have an opportunity to give you side of the matter. Whether that will help your credit rating or not is problematic.

This answer, though responsive to the question is general in nature. It is not designed to be and should not be relied on as your sole source of information when analyzing and resolving a specific legal issue. Each fact situation is different; the laws are constantly changing. If you have specific questions regarding a particular fact situation, I urge you to consult with competent legal counsel.