Legal Question in Credit and Debt Law in Texas

Car Repossession

My finance company repossessed my car after never giving any written notice. Since the car was taken they have now sent me notice of intent to dispose of the vehicle. This repossession occured after a company rep told me to see what Carmax would by my car for. I faxed the finance company the agreed price Carmax would have paid for the car. It was $1000 over blue book and thus a very good offer. Now the finance company states if the car is sold for less than that offer at auction, I will be responsible for any excess amount not covered by the sale proceeds. Can they repossess without providing written notice of deficiency? Also, can they sell for less than the buyer I have secured at their request & stick me for the deficiency?


Asked on 5/24/04, 2:04 pm

1 Answer from Attorneys
Sharon Campbell Sharon K. Campbell

Re: Car Repossession

There is no requirement that a creditor give advance notice of intent to repossess a vehicle. You say that CarFax gave you an estimate of what your car is worth, right? Or did CarFax actually offer to buy the car? Unless you actually had a buyer and told that to the creditor, I don't believe you have a claim against creditor for wrongful repossession. If you were in default, the creditor has the right the repossess the vehicle, sell the vehicle, apply proceeds to your note and hold you responsible for the balance. Sales are usually at auction and almost always leave a deficiency. Okay, just re-read your post. You may have a case for wrongful repossession if the Carfax was a firm offer to purchase.

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Answered on 5/24/04, 2:22 pm


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