Legal Question in Consumer Law in Kansas

We took out a car loan from my husband's employer, signed contract included. He was paid salary and also military. When my husband was on orders they with held part of his paycheck due to him being gone. He no longer works for them and are now saying they over paid him wages and if we don't pay the wages they will repossess the car. We have made all the payments on time and have not been late. Can they reposess the car if we don't repay the wages they supposedly over paid?


Asked on 5/21/14, 9:26 am

1 Answer from Attorneys

Anthony Smith LawSmith

Unless the car is collateral for wages being prepaid, there seems to be no basis for repossessing the car to resolve a dispute about the amount of wages paid. However, since you said the car payments were deducted from him wages, the issue may be that not enough money was withheld, so that your husband might actually still owe some on the car. If a car loan is unpaid, the lender can often repossess the car that was purchased using the loan (if there is a lien). Just lending money to someone, so that they can go buy a car, does not grant an automatic lien.

The documents that you and/or your husband signed, are very important to answering your question. It is unusual to borrow money from one's employer, to purchase a car, where the employer isn't the seller. Therefore, your husband should consult directly with a civil practice attorney, to get advice specific to the facts and documents of this particular deal. You just weren't able to provide enough information here, for someone to give you a definite answer.

Good luck

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Answered on 5/21/14, 9:45 am


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