Colorado  |  Credit and Debt Law

Re: I owe for a car that as been repossed

I agree with the other reply that lenders often sell the car to related parties. The lenders must use commercially reasonable standards when they sell the car. While hard to prove, it can be proved that the lender did not exercise reasonable methods. For example what was the condition of the car at the time of repossession; what was the loan balance; what was the market price, etc. these are all factors. To fight the loan company is a long drawn out process, but it can be done.

This is governed by state law; the Uniform Commercial Code; and the contract you signed.

I am unsure what the statute of limitations is in this matter, and do not want to guess for a message. However, you must raise that issue in your response, and must file a response or the lender will receive a default judgment. Time is of the essence.

Re: I owe for a car that as been repossed

It would be a pretty good assumption that they sold the car for approximately $7,000 below the mortgage balance at the time.

You can find out exactly through the discovery process during the course of the civil litigation.

Ofter the mortgage company sells the car to a friend at a low price and assesses the deficiency balance to you. Hard to prove, but their obligation is to sell the property at a commercially reasonable price.

Good luck.