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Mof52018

Interest on writeoff repo

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Hello,

 

I was trying to find out some type of understanding on repossessed vehicles in the state of Virginia.  I would like to ask is it legal for a loan company to charge interest on a repossessed auto loan that has been written off as uncollectable?  I had a bad health situation last year and we lost our main car.  I remember receiving one notice stating that I owed like $5000 but now on my credit it is stating that I owe like $22,000.  The vehicle was sold last year in November at a repo auction. It was a new model vehicle in excellent condition and the loan balance at the time of repo was $24000. It doesn’t make since for me to owe $22000 on an auto that was sold for around $15000. Can someone please help me understand this?  The loan company was Santander. I live in Virginia and I think they keep pumping up the balance to try and hurt me.

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Welcome to CB.   I'm going to move this to the main credit forum for more views and responses.  Why Chat's site has some excellent repossession information.

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8 hours ago, Mof52018 said:

Hello,

 

I was trying to find out some type of understanding on repossessed vehicles in the state of Virginia.  I would like to ask is it legal for a loan company to charge interest on a repossessed auto loan that has been written off as uncollectable?  I had a bad health situation last year and we lost our main car.  I remember receiving one notice stating that I owed like $5000 but now on my credit it is stating that I owe like $22,000.  The vehicle was sold last year in November at a repo auction. It was a new model vehicle in excellent condition and the loan balance at the time of repo was $24000. It doesn’t make since for me to owe $22000 on an auto that was sold for around $15000. Can someone please help me understand this?  The loan company was Santander. I live in Virginia and I think they keep pumping up the balance to try and hurt me.

Santander is the worst to deal with 

 

you need to read up on the UCC title 9 secured transactions

https://law.lis.virginia.gov/vacode/title8.9A/

 

According to this case, creditors in VA have to comply with the required UCC notices. 

 

read this case on Google scholar 

 

Cappo Management V, Inc. v. Britt, 711 SE 2d 209 - Va: Supreme Court 2011

 

After repossessing the collateral, a secured party may dispose of it in a commercially reasonable manner, Code § 8.9A-610(a), but it must provide notice to the debtor 10 days before doing so. Code §§ 8.9A-611 through -614. Significantly, "t is the secured party's repossession of the collateral, not necessarily the default, that triggers the notice requirement. Absent valid waiver by the debtor in a written agreement made after default, the parties could not alter the notice provisions." Barnette, 457 F.Supp.2d at 659 (citing, inter alia, Code §§ 8.9A-602(7) and 8.9A-624(a)). The parties did not waive the notice requirement in this case. Additionally, Britt, as a debtor, retained an interest in the car after Victory Nissan repossessed it, at least to the extent that she had a right of redemption under the "RISC" and Virginia law. See Code § 8.9A-623(c)(2). Therefore, Victory Nissan was required to provide notice to Britt prior to disposition of the car. Victory Nissan concedes that it did not do so.

 

your best bet is to do some research on what happened to the auto -  if you have the VIN,  the DMV may have records of the sales 

 

We had a  Similar thread here on CB, regarding a late model VW where the lender actually owed money to one of our members, and the reporting was corrected and she received a settlement,  

 

But it wasn't Santander,  

 

you're going to need to find out details  on the same and research this some before we can come up with a course of action , and it may take an attorney to effectively threaten them if the facts come down on your side 

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Plaintiff alleged the lack of periodic statements evidenced the creditor's express
waiver of its right to charge interest. However, Plaintiff cited statue 612 C.F.R. section
226.5(b)(2)(i) which deals with implied waiver and provides:
"The creditor shall mail or deliver a periodic
statement as required by § 226.7 for each billing
cycle at the end of which an account has a debit or
credit balance of more than $1 or on which a
finance charge has been imposed. A periodic
statement need not be sent for an account if the
creditor deems it uncollectible, if delinquency
collection proceedings have been instituted, if the
creditor has charged off the account in accordance
with loan-loss provisions and will not charge any
additional fees or interest on the account, or if
furnishing the statement would violate federal law."

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11 hours ago, legaleagle2012 said:

Plaintiff alleged the lack of periodic statements evidenced the creditor's express
waiver of its right to charge interest. However, Plaintiff cited statue 612 C.F.R. section
226.5(b)(2)(i) which deals with implied waiver and provides:
"The creditor shall mail or deliver a periodic
statement as required by § 226.7 for each billing
cycle at the end of which an account has a debit or
credit balance of more than $1 or on which a
finance charge has been imposed. A periodic
statement need not be sent for an account if the
creditor deems it uncollectible, if delinquency
collection proceedings have been instituted, if the
creditor has charged off the account in accordance
with loan-loss provisions and will not charge any
additional fees or interest on the account, or if
furnishing the statement would violate federal law."

that's for open ended Credit, not installment loans 

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