Voluntary repo questions

[taniablack]

I want to voluntarily surrender my vehicle to my lender. I am unemployed and cannot keep up with the payments and the car is currently not running. I am at the end of a sixty day extension due to being unemployed and having a huge repair bill for our second vehicle. Bad luck that they broke down one after the other. We have thought about the surrender and due to the fact that we are upside down and the car is not running we cannot sell and come up with the difference. There isn't any other options for us at this time. Currently we are one day past due. I informed the lender that we would like to surrender the vehicle and was transferred to a rep in their "legal" department who was extremely rude saying that I was refusing to pay and needed to borrow the money before they take further action. I told her that I already told them that I want to surrender the vehicle so I didn't know what further action she was referring to. After a couple if minutes of her being extremely rude to me I told her to call me back when she figured out how to talk to people and hung up. I am not sure what my next step should be. As the car is not running and the lender is located in a different state. It was purchased at a dealership that is owned by the same company as the lender. I am also considering suing the lender for violating collection practices in February by contacting two seperate people and telling them I was behind in my payments. Any advice on how to proceed would be appreciated.

[Clydesmom]

At this point it doesn't really matter whether it is a voluntary or straight repossession your credit will be trashed. However, voluntary repossession typically means the consumer drives the vehicle to the lender or a local branch if a national bank and drops it off in the parking lot and leaves the keys with them. If your car isn't running and the lender is out of state you cannot do that. Do not take it to the dealer. Even though they are owned by the same company it isn't the same thing and they are not a party to this problem.

 

It may be easier to simply stop paying and let them come get it.

 

I am also considering suing the lender for violating collection practices in February by contacting two seperate people and telling them I was behind in my payments. Any advice on how to proceed would be appreciated.

 

This is not a violation. The original creditor/lender can contact the people you listed on your loan and application as references when you stop paying.

Edited April 27, 2013 by Clydesmom

[taniablack]

I believe it is a violation if they inform those people that we owe money and they can only contact them to get contact information for us if we don't respond. I was in constant contact with them when this occurred and we were only a couple of days late at the point when they called our references.

[BRBiz]

My understanding of the law is they can contact people but can NOT tell them anything about your situation and sharing personal info.. They should really only be calling when they can't find you and obviously if your in contact with them they shouldn't be doing that.

 

If they don't want to let you bring the car some place just let them come take it when ever they feel like. The difference between the two repo types is minor.

[MarvBear]

If the original poster wishes, I will be happy to move this to the main credit forum for more views and responses.

[hoapres]

Legally it is better for the lender to pick the car up.

 

You might lose some legal rights should you voluntarily turn in the vehicle.

[MarvBear]

Legally it is better for the lender to pick the car up.

 

You might lose some legal rights should you voluntarily turn in the vehicle.

+!

[chicagorich]

The problem is that once the car is repo'd, however that is accomplished, the lender is eventually going to sell the car at auction and the difference between what they get and what you owe will end up on your credit report as a deficiency balance owed to that lender. They could end up suing and getting a judgment against the borrower.

[tomforr]

The problem is that once the car is repo'd, however that is accomplished, the lender is eventually going to sell the car at auction and the difference between what they get and what you owe will end up on your credit report as a deficiency balance owed to that lender. They could end up suing and getting a judgment against the borrower.

Sounds like OP is aware of that but not concerned about it. Could be a situation heading for BK.

 

OP -Are you considering BK?