Am I still liable for the remainder of my auto loan if the bank sold it earlier then it said it would?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Am I still liable for the remainder of my auto loan if the bank sold it earlier then it said it would?
I voluntarily gave up the car last month and was told that I would have until the end of the month to either find someone to take over the loan or let it go to auction. It went to auction mid-month and now they say I have to pay the remainder even though they went against what they had told me.
Asked on June 7, 2012 under Bankruptcy Law, Tennessee
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
You are most likely liable.
The first issue is, unless you only gave up your car because they had said you would have until the end of the month, there would have been no enforceable agreement; that is, if you gave up or indicated you would give up your car first, and after doing so, they said that you'd have some time to find someone to take over the loan, that would just have been a "gratuitious promise" by them, and gratuitious promises are not legally enforceable. To be enforceable, there must have been an agreement formed before you acted or indicated your intention to act vis-a-vis the car.
Second, even if there were an enforceable agreement, while it would technically be enforceable--they'd have to give you the extra time--if you do not have anyone who is willing to take over the loan, you have not been damaged in any way by the lender accelerating the sale: that is, if you don't have anyone who is willing to step forward and take over the loan, it doesn't matter whether the car went to auction mid-month or end month. Without any impact on you from the breach of the agreement to give you more time, they can still most likely hold you liable.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.