I know you guys are like me and are wonder HOW can this happen. Well... a dear friend of mine had a car biz and sold the papers to a private individual (who wanted to get into the car paper biz). When he signed the contract with this person he signed his name a president and as PG for the cars (he didn't know he was doing this at the time) Long story short... Out of thousands of papers/cars sold. 60 plus didn't make the payments. So they are NOW showing on his Credit report. He contacted the company and they sent the contract he signed as PG for the cars (that is fine) However, we are in the state of SC. From my understanting.. you have to give a right to cure and etc if you PG a car. He was never given PROPER NOTICE are ANY info on the 60 plus cars. He found out about the repo's when he pulled his CR a few months ago. ALSO.. Let me add it has been well over 5 years when the cars went into default. W ALSO..getting technical... the repo dates and etc are not accurate dates on his CR (this is the paper work provide from the private lender). I'm really trying to help my friend b/c he has had multiple surgeries and has tons of Med bills. Hiring an attorney isn't an option at this point. I know a little about credit and I feel a really good letter letting this guy know what all he has done wrong.. he might just remove them rather than put up a huge fight. What do you guys think?? Thanks in advance.....
For the PG on 68 cars, I'm surprised the dealer never sued him even a single time. Have you checked with the courts to make sure he was never sued? Second, have you checked to make sure that the SOL has passed for suit ... there may be a lurking situation where he could be sued. Don't touch anything until you're sure he's legally in the clear. And if he can't afford an attorney, you may not want to risk being sued even IF the claims are past SOL. Because if he doesn't defend, they get a default. And for the deficiencies on 68 cars, the dealer is likely to hire an attorney who is a cut above the usual creditors' attorney ... this guy might be able to make some argument that short-circuits the SOL stand up in court. Even a dispute with the CRAs could come back to bite because the dealership would be contacted to verify ... however, the situation might not get high enough in the food chain for someone to go find a lawyer ... it might be a safer (though not safe) approach to put all 68 TLs on a letter and write a blanket dispute of all of them to each CRA and tell the CRAs that it has to be a computer glitch ... nobody owns 68 cars that would get repoed. Of course, if his employment history makes clear that he owned a car lot, this might not work as well... YMMV
Thanks in advance for you input and help... See... the situation is CRAZY... he was the Dealership who sold the cars. The Individual who bought the papers or Note did so after six months of on time payments. With that being said... ONLY 68 cars went back out of 16,000 plus sold. The guy that bought the papers NEVER contacted him to give him a right to cure or work out some type of program (as a true PG). FYI.. he sold the dealership due to his health b/f all of this happened. I can say 100% he has NO pending lawsuits, No leins or Def Judgments due to the repos and SOL has passed as a PG on a repo'd car for the state of SC. Also.. his CR's do NOT show him as being an owner of Car Dealership in the past. I too told him to write to them about the logic of having so many repo's at a certain time. NO one can buy that many cars... Any others
I can't understand why he would PG ALL of these notes, provided he sold the loans. I know you say he cannot afford an attorney, but perhaps there is a local college where law students could look this over.
Thats the trick... the Person buying the note had a clause tucked in that he would PG ALL loans that went into default. HE had NO clue that it was in the contract. He had an attorney look over a contract before he signed it and didn't even catch it!!!!
Sounds like an unconscionable clause...I don't know I'm not an attorney - at least have one review the contracts.
Sounds like he should be suing his attorney who reviewed the documents. This gets complicated; what was actually sold? A business, a package of loans, an interest in the business?
It would be GREAT if he could go after his old attorney... that will NEVER happen since he is six foot under. He only one in practice and no other in practiced with him. When you ask what was actually sold.. It was the note/paper of the car loan(s) to this individual. What else do you need to know?
At this point, there is not much more needed to know; I'm afraid to say your friend got burned, and badly. Being that the original attorney has passed away, it only gets messier. It may be possible for a new attorney to claim this previous lawyer was not sound at the time, and should have no longer been practicing law.... Re: the sold notes package, was your friend financing these laons himself, or were they financed through some institution? It sounds like he financed them himself somehow. I still am having trouble accepting that your friend would give a PG for a note package like this.
Let's get back to the real meat here. The defaults are really old. The purchaser of the loans is misreporting to the CRAs. Assuming the dates really are bad (typically the date that starts the clock on a repo is the date the repoed vehicle is actually sold ... and this can be easily ID'd from a carfax report on the repo'd cars), then the appropriate disputes about the dates would set the buyer of the notes up for some legal action on the part of the OP's friend. Perhaps libel, etc. Is there some goal that the bad credit report is standing in the way of? That's damages right there. Time to set things up so the tables can be turned.
