Legal Question in Credit and Debt Law in Texas

What action will a creditor take against me if I no longer make car payments?

I totaled a vehicle I still owed. My insurance policy had lapsed so I was without insurance. I told them I could no longer make the payment. I told them they should pick up the vehicle, they did not, and since then the City has impounded it for a code violation for having an inoperable vehicle. I am extremely stressed out about the situation because I realize I went back on my word and I know I am liable for the debt, also because they call at least three times a week pressing for payment. Some of the persons that have called have been very rude, and say humiliating things about my character. They are also calling friends and relatives I gave as contacts. My sister just lost her husband to cancer, is in mourning and they have called her twice after I asked them not to. I am not hiding from them or avoiding their calls so why are they calling my contacts? Is there anything I can do about this? What action will the creditor take against me, in what approximate time frame and is it now my responsiblity to get the vehicle out of the pound? Because the car is irrepairable, it will only be reimpounded.


Asked on 8/18/04, 8:15 am

1 Answer from Attorneys
Sharon Campbell Sharon K. Campbell

Re: What action will a creditor take against me if I no longer make car payments

If it is the actual creditor calling your friends and family, it is a violation of the Texas Debt Collection Practices Act. If it is a collection agency, it is a violation of the Fair Debt Collection Practices Act. They can call friends and neighbors to obtain location information about you but nothing else, cannot discuss your financial situation with them. I would send them a letter, certified mail, demanding they cease communicating with anyone but you. You can also request that they not call you at work. As to the impound, normally the lienholder is notified by the impounding party. If not, I would notify them. No way to know for certain when creditor will take action and what action, if any, it will take. You can count on it being reported to your credit report. They may or may not file suit against you to collect the amounts owed.

Read more
Answered on 8/18/04, 12:56 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in Texas