Legal Question in Consumer Law in Washington

Auto Lease contract

In 3,2000 I leased a $34,000 car for $565 monthly on a 5 yr contract.

In 9,2001, I returned to the delership for trade in. I was told my car was worth $25,000. I was $8,000 upside down. I tried to sell the car outright,then returned it to the dealer voluntarily. The Lease Company sold the car at dealer auction for $22,000.

I agreed to $50 a month to pay the $8000 balance.

I attempted to secure a loan. I was unable to in part because the lease company reports to creditors that I am paying the original $565 mo. payment.

Banks say my debt to income is unacceptable. I asked the lease Co. to show payments of $50 as was agreed. They did not.

After 15 months the Lease co. stopped sending receipt of payment. After 3 mo. of this I stopped payment. I feel the Lease CO. had stopped managing my account and continued to report false financial information to my creditors. Lease Co. lawyers have taken over the matter and court is evidently the next step.

my position: The lease Co. reporting wrong financial information. The Dealer Auction sold the car for $3000 less than trade in value. Residual of $15,800 is not fair market value. I cannot locate any WA lease laws governing this. Are my points valid? Help please


Asked on 12/11/04, 1:29 pm

1 Answer from Attorneys
Elizabeth Powell ELizabeth Powell PS Inc

Re: Auto Lease contract

$50.00 per month on a 8K balance is going to take roughly forever to pay off.

Your "feelings" are completely irrelevant, and the lease company is probably looking to start litigation to get that balance paid.

The fact that they sold the car for less than your contracted balance means they took a loss mitigating their damages, so, guess what? YOU are liable for the damages.

Don't mean to sound harsh, but you are in a tough spot.

Write to the credit agencies a formal letter requesting that they correct your credit history to reflect the lease of $565 is no longer accurate, instead you are paying $xxx.xx per month to pay this balance.

Go look at Title 62 (?) which governs this situation - UCC as recodified as RCW'.s

There's plenty of caselaw on car leases gone bad. Nothing the leasing company has done will be seen by the bench as conduct in bad faith.

You are making your life tougher by not sucking it up and paying the lease. If your finances are really tight you could consult with bankruptcy counsel and determine if this is worth bankrupting out of.

But failing to make payments because of your feeings will land you in court and you will lose.

Sorry to be the bringer of bad news here, but . . . there is nothing you can gain by not making payments except a judgment, and there are no payment arrangements on judgments.

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Answered on 12/11/04, 2:12 pm


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