Legal Question in Credit and Debt Law in New York

I have two cars under my credit, my car is being paid, but the other car is not, the car company keeps telling me they will reposes my car if they can not find the other car. Is this legal??

Asked on 4/16/10, 8:26 am

1 Answer from Attorneys

Andrew M. Doktofsky Andrew M. Doktofsky, P.C.

The simple answer is no, unless the lender repossesses the other car, obtains a judgment against you for the deficiency after it is sold, and then has the sheriff seize the other car to satisfy the judgment - only if the title to the other car is in your name.

However, if you signed what are called "cross-collateralization agreements" for the cars, then the lender could potentially repossess your car for nonpayment of the other car. This is most common with credit union loans. Please contact my office directly should you wish to discuss your situation further.

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Answered on 4/21/10, 8:43 am

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