Legal Question in Consumer Law in Texas

Car repossesion

My sister bought a car from a small car dealership. Before she finished paying all of her down payment the contract was sold to a financial instituion. She then started making monthly payments to the financial instituion. The down payment was not made to the 1st lien holder. The car has since been repossed by the 1st lien holder. Can they do that even though she was making her payments on time?

Asked on 11/14/07, 4:36 pm

1 Answer from Attorneys

Sharon Campbell Sharon K. Campbell
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Re: Car repossesion

No, they do not have a security interest in the vehicle. That is conversion. Sounds like a good lawsuit against dealer. They have no right to repossess.

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11/15/07, 4:28 pm

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