Legal Question in Credit and Debt Law in Michigan

Lease repossession

My sister leased a car with my dad as co-sign. Her lease was due for turn in Nov. and was reposesed in Sept. The dealership informed of the balance in her note, was to sell car at auction, my dad gets call from collections that he is to pay an amt or garnished wages. They were never informed of the sell of the car , how much it was purchased at nor have they signed off on any title. Is this possible for a collection agency to do without proper notification of any kind to any party listed above? How can I research my dad's rights as a co-sign? Please Help


Asked on 2/13/08, 10:21 am

1 Answer from Attorneys
Renee Walsh LawRefs Nonprofit

Re: Lease repossession

No, the collection agency must obtain a judgment and an order for garnishment before the are able to follow through with their threats. Furthermore, their threats arguably violate the collection practices acts. They will be required to go through the legal steps for collection of this debt and that means your father will have an opportunity to dispute the manner and amount of the sale and the notification / failure of notification.

I will post a blog article on your topic in the very near future at my website www.lawrefs.com for a resource to you to research.

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Answered on 2/13/08, 10:29 am


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