What to do if my daughter-in-law returned a car to the dealer who sold it at auction but then turned her over to collections?

Get Legal Help Today

 Secured with SHA-256 Encryption

What to do if my daughter-in-law returned a car to the dealer who sold it at auction but then turned her over to collections?

He never gave her the chance to settle the debt nor did he contact her about the difference, between what was left owed and what he got at auction. He just turned her over to collections. Does she have any legal recourse?

Asked on September 11, 2011 under Bankruptcy Law, Tennessee

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

She has legal recourse but very limited recourse. She should file a complaint with the agency who regulates this business -- usually the attorney general or department of financial institutions. Then, she needs to not make contact with the collections agency. Instead, she should dispute the claim through the credit reporting agencies reporting this debt. She needs to order her credit reports from the top three agencies, find out if both the loan and the collection is on there and dispute. Do not admit the debt to the collections agency because to do so would and can extend the statute of limitations. This is the statute of limitations the collections agency has to sue your daughter in law for the debt. While your daughter in law essentially did a voluntary repossession, she should know that theoretically, she would be held liable for any deficiencies in debt when the car sells (at auction or otherwise).


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption