Legal Question in Credit and Debt Law in California

auto loans

Does the lendee still have to pay off an auto loan once the auto has been repossessed by the lender?


Asked on 1/12/07, 4:22 pm

1 Answer from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: auto loans

If a lender repossesses a car, the borrow MIGHT be liable for any deficient that occurs. The lender must follow very strict procedures to guarantee a fair price whe the vehicle is auctioned off. If the auction price is not sufficient to cover the loan balance, then the borrow could be liable. The lender would still need to file a lawsuit in a timely manner to collect the money owed.

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Answered on 1/12/07, 4:34 pm


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