What to do if the bank is asking for me to pay the difference for what they claim was owed and what they sold my repossessed vehicle for?

UPDATED: Jun 4, 2011

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What to do if the bank is asking for me to pay the difference for what they claim was owed and what they sold my repossessed vehicle for?

I defaulted on payment for my truck which ultimately lead to repossession (total amount defaulted $1,947). I did get a notice in the mail for their plan to sell the motor vehicle. The letter stated that they would sell the vehicle at a private sale but no firm date. About a month later I received a notice to pay much more than the defaulted payments after sale $7,805. I received a summons letter; they actually sold my vehicle at an auction and I had no knowledge of the auction date. I also received a judgement notice which brought the payment higher. Can I fight this?

Asked on June 4, 2011 under Bankruptcy Law, Connecticut


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

You need to take the documents that you have to an attorney in your state to review.  The notice requirements vary from state to state and you need to make sure that they complied.  Now, what you have is known as a deficiency judgement - the difference between the amount that the truck was sold for and the amount left on the loan - which often results in these maters.  And yes, you are most likely responsible for the deficiency.  The attorney will need to read your original contract for sale and the lenders agreement as well.  As for fighting it, that depends on if the law was followed - which only an attorney in your state can do - and if not, you need to discuss options for resolving the debt.  Good luck. 

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