Voluntarily repossession

[MargaretSpivey]

Jurisdiction

Oklahoma

Hello, my husband got a car out with the key. We signed the contract even though after signing it they threw the bombshell that the interest was going to be 20%, which we were kinda ok with after them telling us. After having it for about 6 months they would call us randomly and tell us that we owed them money. Even though we had already gave our car note, they would tell us if we didn't pay the money that they were going to turn the car off to where we couldn't drive it. After having different occasions of them doing it to us. We decided that we couldn't give them more money then we had so we voluntarily return the car. We are now being sued for a remaining of 11,000 dollars. I'm wondering if I can fight the case so we won't have to pay that due to them always telling us we owe them money & they couldn't even tell us for what. They didn't even have a office where we could go and talk to them. When we would call we would be on hold for about 15 mins then the call would just hang up.

 

[adjusterjack]

We signed the contract even even though after signing it they threw the bombshell that the interest was going to be 20%.

I suspect that you signed the contract without reading it. That's on you. The interest rate had to be in the contract under the federal Truth in Lending Law.

Read the contract. If the interest rate is there, you have no defense.

If, by chance, it isn't there you might be able to get the contract voided and not owe anything. For that you will need a lawyer.

 

[MargaretSpivey]

I suspect that you signed the contract without reading it. That's on you. The interest rate had to be in the contract under the federal Truth in Lending Law.

Read the contract. If the interest rate is there, you have no defense.

If, by chance, it isn't there you might be able to get the contract voided and not owe anything. For that you will need a lawyer.

Thank you. The main thing is how they would randomly call me saying we owed 100 or 50 etc. And they would only give me 3 days to pay it. There was couple of months for two years that we gave them up to 1000 a month & the car note was 500 a month

 

[adjusterjack]

Thank you. The main thing is how they would randomly call me saying we owed 100 or 50 etc. And they would only give me 3 days to pay it. There was couple of months for two years that we gave them up to 1000 a month & the car note was 500 a month

That's something you should have talked to a lawyer about as soon as it started happening. Too late now. Though you should be hiring a lawyer to review your contract and payment records (hope you paid by check or got receipts that you kept) and see if there is any way to mitigate the amount claimed.

Trouble is, you blew it by giving the car back. A repo is a repo and the lender is entitled to the deficiency if the car is sold for less than the amount owed plus his costs.

 

[army judge]

Thank you. The main thing is how they would randomly call me saying we owed 100 or 50 etc. And they would only give me 3 days to pay it. There was couple of months for two years that we gave them up to 1000 a month & the car note was 500 a month

If you are drowning in other debts, you might wish to consult with a couple of bankruptcy attorneys.

You can save yoruself some money if you file a chapter 7 BK, pro se (meaning you and your spouse file the BK).

Other than a BK, that debt and others will haunt and hound you for years.

A BK will, upon filing, cease all collection efforts and contacts, and eventually have all debts dismissed by the court giving you a clean start.

 

[MargaretSpivey]

If you are drowning in other debts, you might wish to consult with a couple of bankruptcy attorneys.

You can save yoruself some money if you file a chapter 7 BK, pro se (meaning you and your spouse file the BK).

Other than a BK, that debt and others will haunt and hound you for years.

A BK will, upon filing, cease all collection efforts and contacts, and eventually have all debts dismissed by the court giving you a clean start.

Thank you. I have spoken to my husband about filing chapter 7 BK. I'm currently enrolled in law school and do learn about. We just bought our first home 2 months ago. I will consider chapter 7 BK

 

[army judge]

Thank you. I have spoken to my husband about filing chapter 7 BK. I'm currently enrolled in law school and do learn about. We just bought our first home 2 months ago. I will consider chapter 7 BK

That is the only way you can shoo the buzzards away, especially if you've been sued and aren't aware of the lawsuit and its outcome.

It will also alleviate the alleged $11,000 deficit the lender asserts you owe.

If your husband disagrees, you are free to file as a single party.

Your spouse's permission is not required to file alone.

If your spouse is smart, he'll see the advantage in it, if you.

 

[txls]

It's impossible to tell from your story what was going on and what the random amounts of extra money were for. You should have been asking questions way before now. It's probably too late to do anything about any of it. 20% interest is very high, but if you signed off then so be it. If you have everything you signed and proof of every payment you made to them, someone might be able to look at it and make sense of it.

 

[mightymoose]

There really is no such thing as voluntary reposession. They don't want the car back, they want to be paid what you agreed. If they agreed to take the car you are lucky.

Your reasons for wanting to fight the balance due won't get you anywhere. Bankruptcy probably is your best option if your finances are that tight.

20% ?? Wow. That is God's way of telling you to not buy that car. If you can't secure financing with a rate in single digits you probably should not be financing. Personally I would walk away from anything over 5%.