Legal Question in Credit and Debt Law in Maryland

I obatined a loan by using my two vehicles as collateral. I had to give the title of both cars to the finance company. One vehicle has been repossed and I made a verbal agreement with the collection manager of the finance company to keep the other vehicle. I have been making reqular payments for the past 10 months as agreed and was assured by the collection manger that as long as I keep doing what I was doing, I would have no problems. I also went to court on 8.23.10 and was given the same advise by their attorney. To my surprise, the second vehicle was repossed on 10.6.10, I contacted the finance company and was told that a notice is automatically sent for repossession when an account is showing 60 days deliquent. My account will aslo so as deliquent, this is why I had to make a verbal agreement to make a payment of around 382 to 389 on the 6th of every month. The finance manger told me he would make a few pone call to see if I could get the vechicle back as soon as possible. To date, I still have not heard back from him. I have also contacted their how stated at court to give him a call if I have an problems. Now, I do not know where to turn. To my understanding, a verabl agreement is just as legal as a witten agreement and the finance company did not keep their part of the agreement. Please advise if I have any rights and what steps I should take.

Thanks,

Desperate


Asked on 10/13/10, 8:24 am

1 Answer from Attorneys
Phillip M. Cook Cook Legal Services, LLC

A verbal agreement is not necessarily "as legal" as a written agreement. Certain types of contracts MUST be in writing, otherwise a Court cannot and will not enforce them. For instance, any contract for over $500 needs to be in writing (this is likely your situation). Another example of a contract that needs to be in writing in order to be enforced by the Court is a contract for the purchase of real property (real estate/land).

You likely do not have any legal rights against the collection company for the repossession. If I were in your shoes, I would continue to call and politely nag the manager you spoke with and see if he is willing to do something for you.

Best of luck.*****The above is for informational purposes only and does not create an attorney-client privilege.******

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Answered on 10/18/10, 9:01 am


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