Can anyone tell me what the ramifications are of a bank's charging off a balance instead of redeeming the security that was pledged for the loan?
Calls from collection company, and maybe a repo man. Or a lawsuit what kinda security was it? and what state are u in?
Hmm..must not have been a whole lot of a deficiency, or your state prohibits repo/sale. Which begs the question, are you out the WHOLE amount of the loan? or can you give them the keys and have them deduct the value of the car? It appears NJ does have repo laws. The Uniform Commercial Code allos repos. What is the listing and amount of the debt as it appears on your credit report?
Listed as CO for $2400. They could have repo'd it. Don't know why they didn't. I'm still driving the car. I've had it for 8 years.
They probably figured, because of the age of the car, and the cost of repoing, reselling, etc., the bank took less of a loss by NOT repossessing.
