Legal Question in Credit and Debt Law in Texas

threaten to repo cars

We refinanced 3 autos through our Insurance Co.We were told when we filled out the paperwork at our Insurance Co. that all 3 titles would be seperate as the Co. we switched from had them tied together,and the lady told us that was not legal. My husband co-signed on our son's truck years ago and we let it go back.The Insurance Co. Bank wrote and called us saying they sold the truck at Auction and we were liable for the Bal. of $8,000.00 They said if we didn't pay it they would repo the remaining 2 cars we have been making notes on and could never get a clear title once they are paid off.The man called it Cross Collateralization.Since,has been awhile back,they had sent a letter to make us a deal to pay only a smaller portion of the $8,000.00 They have not repod the cars,and i make my payents,on time, each month,and have not been hassled by them in months.Can they actually repo our cars while we make payments,and when we pay them off can we get our titles? We were told that there would be no cross collateralization,but seperate refinacing on each car when we agreed to let our Insurance Co. refinace our cars.We have not heard from them in awhile now,calls,letters have stopped.We feel we were decieved. Thanks,Yvonne


Asked on 5/01/08, 7:56 am

2 Answers from Attorneys

TC Langford Langford Law Office

Re: threaten to repo cars

You need to locate, either from your files or request a copy from them, the paperwork that you signed. It is not helpful to try to remember who said what at the time the refinancing took place, but to read the documents that you signed. Once you locate the documents, have an attorney review them to advise you. The cost of the consultation will be easily worth it to you.

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Answered on 5/01/08, 8:06 am
Jeffrey Brashear The Brashear Law Firm, PLLC

Re: threaten to repo cars

Based on what you have written, it appears that everything will be based on the terms used in your agreement. As such, you will need to have a law firm review the terms to ensure that the agreement says what they are telling you.

Cross-collateralization is a term used when the collateral for one loan is also used as collateral for another loan. If a person has borrowed from the same bank a home loan secured by the house, a car loan secured by the car, and so on, these assets can be used as cross-collaterals for all the loans. If the person pays off the car loan and wants to sell the car, the bank may veto the deal because the car is still used to secure the home loan and other loans. Technically, cross-collateralization expires when the borrower has no outstanding loans with the bank. A cross-collateral provision is widely used by the banks to decrease risk.

If my law firm can assist you with this legal issue or any other legal matter, please contact my legal assistant Jennifer ([email protected]).

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Answered on 5/01/08, 10:22 am


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