Legal Question in Credit and Debt Law in Michigan

Michigan Re-po law

I could not pay my car payments in June and July of 2005. However, the credit union never made any attempt to collect on the loan outside of phone calls. I made arrangements and attempted to pay them, but they repossessed the car instead. They asked to me to voluntarily surrender the vehicle, but by then, I was working and living in Queens, NYC. I have kept them up to date on my address so that they could come and get the car, but they never did. Also, they never sent me one letter with regard to the repossession. Now there is a ''charged off as a bad debt'' on my credit rating, and the credit union is still not trying to come and get the car. In fact, they won't even speak with me on the phone, and I have yet to receive a notice in the mail. What's the deal? I have heard that because of some weird Michigan law that I now own the car. Is that true? If not, what can I do to keep the car without paying the entire $24K that I owe, which is what they are demanding verbally (still not in writing)? Please let me know if you have SURE information, or can refer me to the proper Michigan statute. Thanks so much!

Asked on 1/11/06, 10:02 am

1 Answer from Attorneys

Rochelle Guznack Law Offices of Rochelle E. Guznack, PLLC

Re: Michigan Re-po law

I am SURE that if you still have the car, the credit union did not repossess it. If you have not paid and still have possession of the car, then you owe the loan balance which has been charged off. It does not sound like a wierd law to me, but makes good sense.

You can probably make arrangements to voluntarily surrender the vehicle if you contact the appropriate person, but it is up to the credit union. They may not want to since you live so far away. Even if you do surrender, you may owe a balance that will continue to show up on your credit report.

Good luck.

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Answered on 1/11/06, 10:32 am

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