Re: Voluntary Car Repossession

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On 7/13/06, Jeff wrote:
> Hi, I lost my job a few years back and had to turn in my
> car to the bank. I told them to come pick it up and that I
> could not make any more payments on the car due to my job
> loss.
>
> I was told that if I lost my job when I bought the car the
> insurance that I purchased would cover what I owed and pay
> the car off ....so the salesman told me.
>
> I was also told by the salesman that the insurance would
> be taken out in little payments in my monthly bill.
>
> Come to find out that it was actually taken out of my
> downpayment in the beginning.
>
> I tried to sell the car before turning it back in, but I
> was about 4k$ short of what was left on the car (the money
> which was for the insurance)
>
> What laywer might be able to help me get rid of this and
> stop these people from contacting me and trying to collect
> this money from the difference which they sold the car for?

Jeff, you need to gather any and all documents you have and
take them to any lawyer. He/she will be able to determine
what is what and how to proceed.

The key question is; What did the contract say regarding
paying off the loan should you incapable of doing so? The
contact may state that payoff would be based on current Blue
Book value of the vehicle as opposed to the balance of the
loan. That could result is a BIG difference.

Example: If you purchased the vehicle for $10K, paid $2K on
the principle, and Blue Book value is $5K at the time of
default, you're responsible the $3K remaining on the note.

No matter what the salesman told you, the contract is the
binding legal agreement.