can my former employer say i stole a car?

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can my former employer say i stole a car?

I work for a company. The owner loaned me $4000 for a car. We drew up a promissory note and I paid him $50 a week. I went in today to put in notice of quitting but he said no and fired me. He also said I have 2 days to repay him for the rest of the loan amount or he would call the cops and say the car is stolen. The title is being held by them but is in my name. I have never been late and the note says that he can’t do anything until I’m 60 days late. He said the note says that the pay will come out my check and since I no longer will be receiving a check he can do what ever he wants.

Asked on December 26, 2016 under Criminal Law, Tennessee

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

He can only do what the loan agreement--that is, the promissory note--says he can do. If it states that it comes due at once (any remaining balance, that is) when you leave work, it comes due, for example. However, he can *only* do what the promissory note authorizes him to do, so if the note says, for example, that it is repaid at $50/week for 80 weeks, then you are not in default as long as you are paying $50 per week. And if the note prevents him from taking action until you are 60 days late, then he can't do anything until then. If he acts in violation of the note--e.g. tries to sue you, when under the terms of the note he cannot--he will lose in court. And if he reports the car as stolen when it is not, you can then sue him for abuse or malicious use of process--for misuing the legal system--and look to press charges for filing a false police report.


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