Legal Question in Credit and Debt Law in Texas

Vehicle Lease - Repo

I had an auto lease that I got behind on the payments and the vehicle was repossessed more than a year ago. I recently have been receiving daily phone calls from a collection agency saying that I owe $10,000+. The amount was derived from the supposed loss that the original creditor took when they sold the vehicle at auction. Am I liable for this amount? What am I liable for on a vehicle lease if they have taken the vehicle? Also, if this supposed debt was purchased from the original creditor that I had the contract with, am I obligated in any way to pay the collection agency? I read somewhere that if a collection agency purchases a debt from a creditor, then the debt is considered satisfied, and since I never had a contract with the collection agency, I should't owe them anything. Is this correct?


Asked on 10/20/04, 8:25 pm

1 Answer from Attorneys
Sharon Campbell Sharon K. Campbell

Re: Vehicle Lease - Repo

General rule - you are liable for the deficiency. One defense is to prove they did not handle the sale in a commercially reasonable manner. You don't have to deal with a collection agency. A collection agency collecting the debt, whether or not they own the debt, does not relieve you of legal liability of the debt. But, according to the Fair Debt Collection Practices Act, you can send them a cease and desist letter, telling them to cease and desist any and all communications with you, you prefer to deal with the original creditor. There is nothing to stop them from filing suit against you, however.

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Answered on 10/20/04, 8:35 pm


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