Legal Question in Credit and Debt Law in Texas
My car broke down so I contacted a friend who managed an auto repair place. He said if I got it towed he would let me know what needs to be done with it. I had it towed. They came back and said the cost of repairs was higher than I could pay. They said they would sell the car for me, and use the money to pay for repair bills, and I could use the rest to pay off most of the car note.
A few months passed and I did not hear anything. I tried a few times to contact my friend, but just assumed he was busy and he would let me know when it was sold.
I finally contact the owner of the auto repair and he says that I owe him over 1000 dollars in 'storage fees'. No storage fees were ever discussed or agreed on. As far as I was told, it was a friend doing me a favor and selling my car for me.
The bank now want the car back, as I cannot afford to pay for a car that I am not using. I have told them who has it and they have contacted the person and he refuses to give it back. I have explained the situation to the bank, and their collection agency.
Is the responsibility to get the car back mine? and if so, how should I go about this? No contact or anything was agreed for the repairs, so I think the car is technically stolen. Any advice would be great.
1 Answer from Attorneys
If you have decided that you don't want the car, then the conflict is now between the bank and your crooked friend. Let them fight it out.
The consequences to you will be that you'll owe a "deficiency balance," the difference between (a) what the car will sell for at a distress sale and (b) what you still owe on the note.
The bank will eventually sue you for the deficiency balance. And it will affect your credit rating.
Your crooked friend may also come after you for the "storage fees," but if he does, you should counter-sue him for fraud.
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