Ok, I just found out who is collecting a deficiency balance on a car I used to have that got repoed. I was never notified of the deficiency balance after it was sold, I was never even notified that the car was being sold. Where can I find the laws for collecting deficiency balances in NY? The lein holder is in Tennessee and the CA is in NY.
Erica, I will search for you If you want to search also, look here: http://www.lawdog.com/states/ny/st1.htm search term that usually works is "deficiency balance" but it gets a lot of returns, LOL.
Breeze, I tried to use that site, but found it confusing. If you find anything, PLEASE let me know! Thanks!!!
OK I got it for you, but if you want to read for yourself, go here http://www.lawdog.com/states/ny/st1.htm click on "automobiles and repossession" then click on "repossession" in red at top right hand corner of the page. (three boxes there) Basically, with the original creditor, you are liable for deficiencies, with no exceptions. With a collection agency, or anyone who has purchase the account, it has to be specifically stated in the contract. So, you need to read your original contract. If you don't have it, they probably don't either. So, I would say, write and ask them for proof that you owe them this money. They would have to produce the original contract stating that you are liable for the deficiency balance after the "paper" was sold. If I understand this law correctly - I am pretty smart , that is the only thing that would hold up in court. If no one has the original contract, no one can prove you owe the money to the CA. No judgment would be awarded as long as you showed up and defended yourself using this law. I am not a lawyer, you prolly should check with one. I think Sqawk is in NY. See if his email is enabled and ask him.
Breeze, I actually DO have the original contract and will have to see if there is something like that in it. THANK YOU!!! I will try to e-mail Squawk and see what he says.
Glad to be of help. Hope it is all in your favor. And, it's always worth a shot in the dark even if it is in the contract, hehe. Nothing to lose.
Ok, from the contract: "Default: You will be in default if (1) you fail to make any payment when it is due, or (2) a bankruptcy petition is filed by or against you, or (3) you have provided false or misleading material information on a credit application related to this contract, or (4) any local, state or federal authority seizes the Vehicle and does not promptly and unconditionally return the vehicle to you, or (5) you fail to keep any other agreement in this contract. If you are in default, the Creditor may require you to pay at once all remaining payments an all other amounts due under this contract, less a refund of part of the finance charge. He may reposses the Vehicle too. He may also take goods found in the vehicle when repossessed and hold them for you. If the vehicle is taken back, he will send you a notice. The notice will state that you may redeem the vehicle. It will also show the amount needed to redeem and your right, if any, to cure the default. You may redeem the vehicle up to the time the creditor sells it or agrees to sell it. If you do not cure the default, where allowed by law, or redeem the vehicle, it will be sold. The money from the sale, less allowed expenses, will be used to pay the amount still owed on this contract. Allowed expenses are those paid as a direct result of having to retake the vehicle, hold it, prepare it for sale and sell it. Lawyers' fees and legal costs permitted by law are allowed too. If there is any money left, it will be paid to you. If the money is not enough to pay off this contract and costs, you will pay what is still owed to the creditor." Correct me if I'm wrong, but I don't see anything about collection agencies in there at all.
Neither do I. Okay, look for another section of the contract dealing with their right to sell the account. It could be there.
There is nothing. Just sections for: Payments Security Interest (insurance) Use of Vehicle-Warranties Vehicle Insurance Late Charge Default (previously written) General There is also a section for Assignment where the dealership releases all interest in the vehicle to the bank. That is it! Nothing about the debt being reassigned to a CA. Any help?
