Legal Question in Credit and Debt Law in Texas
Car Reposession
I purchased a car at 18% and when I went to the dealership for my tags the loan office said the interest was 21% and that they fired the loan officer who issued me my first contract.Since I had just been in an accident and totaled my truck I needed a car and i resigned the loan. years later I am still paying on the car and cant refinance it due to slow pay and know a reposession. The car is worth 3000 but finacing is 7300 still owed. I have 2500 for a new car and to put on credit repair (399), but know I have a repo on my credit and I still have the car. What is the best way to get out of the car and save what is left on my credit.
1 Answer from Attorneys
Re: Car Reposession
Outside of reporting the VERY shady business dealings of the car lot to the BBB and the AG, am not sure you have any recourse at this point.
You re-signed the note at the higher interest. (am assuming this happened a long time ago).
Your best bet is to approach the loan company, yourself or through an attorney, and try to renegotiate the loan, or negotiate returning the car without it being reported as a voluntary repo. It is preferable to all parties, than a bankruptcy or a judgment against you (that would probably be uncollectible in Texas).
The fact that you have the money to buy another car is a secret you might not want to share with them.
BE VERY CAREFUL with the debt reduction plan. EVERY single experience I have had with such organizations as an attorney have been disastrous. The only organization I know of that does this legitimately, without destroying your credit in the process, or even running off with your money, is Consumer Credit Counseling, a nonprofit organization with a sterling reputation. Research and rethink this plan.
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