Legal Question in Credit and Debt Law in Texas
Creditor's recourse for default on truck purchase
Last fall, I purchased a used truck. It was checked out at the time of purchase & needed a fuel pump replacement which was done. Since then the emissions system, motor, battery & alternator have been replaced but the truck is not running. The creditor says that if I default and he reposseses, I would still be liable for the full amount due on the loan. I know that I could be liable for the difference if the vehicle is auctioned but I shouldn't be accountable for the full amount, should I? Also, the loan was transferred to another company. I received a letter of this transferr which stated that all terms would remain the same as with the original creditor but small fees showed up on my first few bills that they could not explain. I have not received a bill in 3 months; I received a letter in June that asked me to contact them but it did not show the amount past due or total due on it.
Your help with this question is appreciated. Thank you.
2 Answers from Attorneys
Re: Creditor's recourse for default on truck purchase
It is not wise to simply allow them to repossess the truck. You must have an understanding concerning the disposition of the vehicle or they will sell it to themselves at a bargain price and hold you responsible for the balance of the loan.
You are better off to arrange other financing or sell the truck yourself and pay the difference between the loan balance and the sales price - you will come out better.
Re: Creditor's recourse for default on truck purchase
I agree with Mr. Aspinwall's conclusion. However, if there have been unilateral changes to your contract, you may have an opportunity not only to avoid the contract, but to collect damages as well. If you want to discuss this further, send me a direct e-mail and I will give you my toll free telephone #.
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