Hello. First of all, I really appreciate all of the exceptional knowledge that creditmashup.com has provide. I also want to note that I stay in Texas. I have spent countless hours online searching for advise and/or even laws regarding a matter that I have.
My car was in an accident where the driver of my vehicle was excluded from my insurance policy so my full coverage policy would not cover any damages/loss. The repairs costed thousands of dollars and I had just lost my job. Therefore, I told my car lender to pick it up from the auto repair shop. They eventually did. On my credit report, the creditor is reporting it as a charge-off and for the remaining balance on my loan.
I heard that they are supposed to notify me in writing of what they are going to do with the vehicle. I don't know if they sold it for less or not (it was pretty damaged so they may have not). I can't seem to find anything out there on this. I want to even reach out to them to see what they did with the car in order to verify the amount I actually owe. However, I'm scared this may restart timing of reporting on my credit. Any guidance is appreciated.
Contacting a creditor about an unpaid debt is not going to trigger a change in the statute of limitations. It’s not that simple. My advice to you is to contact a Texas attorney that specializes in car repossession law. And here is why:
There’s very little difference in voluntary and involuntary repossession. The bank or finance company must send you a letter, after repossession, informing you of the amount you need to pay in order to redeem the car. You will then have 10 days to pay the redemption amount, or your car will be sold at auction or private sale.
The sale proceeds will be deducted from the car loan balance. If a deficiency balance occurs you should be informed in writing of that balance.
The bank or finance company can demand this amount from you and also has the right to sue you for the deficiency balance.
This is where an attorney is needed. The bank or finance company should have sent you some type of “Notice of Intent to Sell Motor Vehicle.” If there are any missing points in that notice, the creditor loses the right to collect any deficiency balance from you.
However, if the bank or finance company fails to send you this type of letter informing you of their disposition of the car, they may be barred from collecting any deficiency balance that is due.
Contact an attorney. You may not even owe a deficiency balance if the bank or finance company failed to follow Texas Repo Laws. You may be able to find an attorney specializing in repo law at naca.net. They are a group of consumer advocate attorneys around the country and may offer free consultations.
Don’t be afraid to take action. The best of luck to you.