Joint Car Loan Repossession While Deployed

[mrstevenj]

Basically, I made a huge mistake in co-signing a car loan for a friend with Toyota. I was deployed in 2008. As soon as I was deployed, this so called friend immediately stopped making payments. I was looking up the Soldiers and Sailors Civil Relief Act, and I found this:

 

Installment Contracts and Auto Leases

 

A service member or spouse may request protection under the SSCRA for pre-service debts incurred under installment contracts and auto leases. The service member or the spouse must prove that the service member’s military obligations have materially affected his/her ability to pay on the debts. Also, at least one deposit or installment payment must have been made on the contract before entry on active duty. If the contract falls under the protection of the SSCRA, the creditor is thereafter prohibited from exercising any right or option under the contract, such as to rescind or terminate the contract or to repossess the property, unless authorized by a court order.

 

Does this mean that they legally could not repossess the car without a court order? I had no idea that the friend had stopped paying, I was never notified of the repossession, and Toyota repeatedly refused to talk to my wife about the account despite my deployment status. Since I've been back this friend has been a total deadbeat still, and I've got a CA hounding me for 5k for a car I never had. Is there a way to get this off my credit from this? From what I read it seems to me that they could not repo the car without a court order because of my deployment. Anyone have any advice with this?

[Moorlock21]

Basically, I made a huge mistake in co-signing a car loan for a friend with Toyota. I was deployed in 2008(Are you NG, reserves, or active?). As soon as I was deployed, this so called friend immediately stopped making payments. I was looking up the Soldiers and Sailors Civil Relief Act, and I found this:

 

Installment Contracts and Auto Leases

 

A service member or spouse may request protection under the SSCRA for pre-service debts incurred under installment contracts and auto leases. The service member or the spouse must prove that the service member’s military obligations have materially affected his/her ability to pay on the debts-a lot of deployed NG and reserves forget about this and it can be used against you if you made more money on deployment then you did before deployment which is often the case when you account for taxes. Also, at least one deposit or installment payment must have been made on the contract before entry on active duty(Sounds like you've got this one covered). If the contract falls under the protection of the SSCRA, the creditor is thereafter prohibited from exercising any right or option under the contract, such as to rescind or terminate the contract or to repossess the property, unless authorized by a court order.

 

Does this mean that they legally could not repossess the car without a court order(who's name is the car registered under?)? I had no idea that the friend had stopped paying, I was never notified of the repossession, and Toyota repeatedly refused to talk to my wife about the account despite my deployment status. Since I've been back this friend has been a total deadbeat still, and I've got a CA hounding me for 5k for a car I never had. Is there a way to get this off my credit from this? From what I read it seems to me that they could not repo the car without a court order because of my deployment. Anyone have any advice with this?

 

This is just my opinion, and you may want to have your SJA take a look at it, but I don't think that you're covered. The bottom line is that your friend bought a car(HIS car) and you just helped him out-If the car is registered in your name and you were the one responsible for making payments then you have a shot. If it was you or your spouses car I would say the SCRA certainly applies here, but it is your friend and I don't think Toyota Financial will just roll over on that one.

I'm sorry, but this is my take on it. Hopefully someone else can point you in the right direction...

 

 

Joe

Edited March 14, 2010 by Moorlock21

[mrstevenj]

I'm sorry, I don't understand the difference. I co-signed the car loan. That means I'm also financially responsible. Why would it matter if it's a friend or a spouse or even a stranger? Either way, I'm still responsible if that person doesn't pay. Only problem is, I was deployed, so I had no way of knowing if that person didn't pay, and I had no way of paying if that person didn't pay. So it doesn't seem fair that they can slap a repo on my credit report without notifying me when there was zilch I could do about it while I was deployed, does it?

[Moorlock21]

I'm sorry, I don't understand the difference(The difference is that it isn't YOUR car, it's his). I co-signed the car loan. That means I'm also financially responsible(True-by cosigning you have all the responsibilities and none of the rights). Why would it matter if it's a friend or a spouse or even a stranger(The SCRA applies only to military members and their spouses, not to friends or strangers that know the military member)? Either way, I'm still responsible if that person doesn't pay(True). Only problem is, I was deployed, so I had no way of knowing if that person didn't pay, and I had no way of paying if that person didn't pay(You're friend should have told you that he was having problems-He is the owner, not you). So it doesn't seem fair that they can slap a repo on my credit report without notifying me when there was zilch I could do about it while I was deployed, does it?

 

 

 

 

 

 

If I were you I would talk to the SJA and see if they can help you in some way. My above post was MY opinion and I have been wrong before. There may be variables that could help your case like if you were the registered owner of the car.

 

Also, you may want to check out the automotive forum as there are several people in a similar situation to you just without the military angle-do a search on REPO and REPOSSESSION with the keyword co-signer.

 

 

Good luck, and let us know what the SJA says so that when someone else comes with something similar that we can help them a little bit better then we helped you...

 

 

Joe

 

Edited to remove snarky judgmental language about the fairness of life

Edited March 14, 2010 by Moorlock21