Will the company that sued me for an auto deficiency allow monthly payments to settle?

Рет қаралды 6,517

5 жыл бұрын

www.alabamaconsumerlawblog.co...
First, to answer the question, most likely yes. Most of these companies will allow and encourage monthly settlement payments to them.
But a few warnings.
Make sure you want to settle with them paying them money. Check out the statute of limitations -- it may be shorter than for a normal breach of contract. (In Alabama breach of contract is 6 years but most auto loans are 4 years).
Second, watch out for the idea of a consent judgment (here is a video on it -- • "What is a consent jud... ).
Third, protect yourself while you are negotiating. Still file an answer to the lawsuit so you don't get a default judgment ( • Definition: What is a ... ).
Hope that helps and keep the good questions coming -- I'll be doing a better job of answering them in the future by videos.
Thanks!
John
John G. Watts
Watts & Herring, LLC
Representing consumers across Alabama
205-879-2447
www.alabamaconsumer.com/
"No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers." Our free weekly webinar is here -- my.demio.com/ref/ZHxa8NhYRNAp... -- on Thursday we'll be talking about some of the new FDCPA rules. Join us if you can!
"No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers."

Пікірлер: 17

@Darkvdow 4 жыл бұрын

I’m so happy I found your channel I’m a CDL holder and just started my trucking business. I called your office they were really polite and I’m just waiting on your review on my case with my purchase of first commercial truck. The name Is Desmond LaVelle Thanks for starting your channel

@RussellD11 4 жыл бұрын

I know law/life isnt fair, but I "feel" its not fair that they (the car original lender) will sell that car at a garage sale price, maybe 30-40% less then what its worth, and then your getting a deficiency judgement. And yes I agree, If we wanted to get closer to retail, we could have sold it ourselves, but if where upside down, im not sure they negotiate "short sales" like real estate? Its just sad that the asset taken on levy, is sold at a fraction of its TRUE VALUE... and then where stuck with that... And someones makes big $$ on these cheap sales too, the dealers that buy these things.... Like if its bankruptcy/judgement levy and you have your exempt amounts on a car, what amount is that? The Garage sale , auction sale price?, or the Retail price? There is a HUGE difference!

@johngwatts 4 жыл бұрын

Very good point. It is rough. One difference is (at least in AL) most foreclosures bring the price equal to what is owed so if you lose your house, at least you don't owe any more money. But with a car, you lose your car and then you get sued. Thanks for your comment and thoughts... John

@RussellD11 4 жыл бұрын

@@johngwatts say you have a judgement for a credit card. your state allows a $3000 exemption for your car. You car is worth $5,000 in the retail world and thats what you would have to pay to replace it. Say they take your car and by the time they pay the fee's, sell it, ect , they end up with $2800 left which would go directly to you as its under the exempt amount and they accomplished NOTHING but screw you over. HOWEVER, now your screwed out of you car which was worth much more then $2800.. What happens then?

@johngwatts 4 жыл бұрын

Like you said -- basically you are up the creek with the only "advantage" being that there is nothing more they can take. I find MOST collection firms won't do this but there are several that will. I personally find it wrong to take someone's property but if they act within the law it is allowable, just not my preference. John

@bridgettelliott3220 Жыл бұрын

What do you do when you buy a 11 yr old car at a buy here pay here places (America's Car-Mart) and it's NEVER ran since you bought it? It now has 183k I've had it 1 yr 6 months and it will not run it's not safe and they have told me lie after lie that they fixed it. I can't afford it anymore bc I have to rent cars and pay Uber or Lyft. So therefore I can't pay my car payment. They charge a "tax fee" every 6 months you either pay it (1 is 928 in April) the other is 735 (due in Sept) and they say it's to "keep payments and interest low ...BS) they don't mind adding those to your loan making it a higher payment and adding it to your loan. It's 400 a month and I owe over 13k. Ik buying it was a bad deal. Banks won't touch it bc of the price age and milage. They took it even though I was 2 days late (they have a 15 day grace period. They told me they didn't know where it was at first. Then they said they laughed and said "well you are always grilping about it now it's gone then they said they took it for repairs and would keep me posted when it's "fixed' supposedly it's had several axels bearings motor mounts tons of things that after I get it back it runs 2 days and its back to it's old self of not running. They claim on their website their vehicles have tires brakes any engine or electrical issues all in great shape. My car came with no brakes 2 mm on front 3mm on back) dry rotted tires I noticed after all the shine came off and smelling like burnt plastic. It had a massive oil leak and I've battles this for over a yr. It's not dependable or even safe. What do I do? I was mad I said I'm volunteering giving it back bot in email and over the phone and they are harassing me about payment's yet they won't even let me pick it up even though I made my payment of 400. I'm fed up I'm emotionally mentally and financially drained from it

@jaquan2187 5 жыл бұрын

I'm definitely a subscriber of yours and truthfully you are one of a kind, with that said I have a question. I've been sued by Midland funding and In the summons they have a statement where it says I made two payments. This was over 3 years ago and I don't remember making those payments. Would that be proof I owe the debt to them or do they still have to prove they own the debt. Please respond and thank you sooooo much for your amazing videos. More than just a subscriber I'm also a fan. I live in GA

@johngwatts 5 жыл бұрын

Jaquan, Thank you for comments! First, I would find out if Midland is saying you made payments to them or to the original creditor? If made the payments to Midland, they will argue that you acknowledged they own it. Not really a legit argument but they may make it. Second, I would see if you can find out if you made the payments -- check bank records etc. Third, get with Steve Koval in Atlanta -- he's a great consumer protection lawyer in Atlanta. Finally, I do think Midland has to prove ownership but I don't know if that's the law in Georgia. It certainly is in Alabama. Best wishes my friend! John Watts

@georgeross6304 2 жыл бұрын

Mr. Watts, short question. I am helping a family member in the Midwest. He borrowed money at a local credit union. CU repo'ed the car back in 2017. CU filed a deficiency lawsuit in 2018. Court rendered a judgement around mid-2018. The principal balance is 21K. CU is trying to very hard to garnish but my relative but she is basically judgement proof. Therefore, they wasn't able to collect any. In the last garnishment document filed in court in 2020, the total amount is 23K. Now, the relative is trying to sell the house. The house has less than 5K equity. I am trying to help my relative negotiate a deal. I want to try to have a lowball cash offer like 2K. However, I do not know would this fly. So, here is my question: How likely this CU will take this offer? What kind of tips you may offer to make CU take this lowball offer? Thanks.

@glennthornton9357 5 жыл бұрын

Quick Question: If someone hired an attorney today to fight a FDCPA violation with malicious intent. What is the quickest amount of time, in your experience, can a person be awarded a settlement out of court? So will it take 2 weeks from today? 1 month? 3 months? 6 months?

@johngwatts 5 жыл бұрын

Glenn, We have sued collectors and settled within a month. Not very common. You either need a case that is not a big case -- so it is a case worth $10,000 or so. OR you need a big case (six figure case) that the other side quickly realizes is very dangerous for them and they want it settled immediately. So that's my answer for the quickest time -- a month or so because once you file the case, it takes a while for the other side to get served and then look at what the lawsuit is about. Hope that helps John Watts

@glennthornton9357 5 жыл бұрын

@@johngwatts Thanks! Sounds like a good answer! A few more quick questions. How long does it takes to serve the defendant in a circuit court? And why does it take so long to serve? Any advantages of delaying serving the defendant? When does discovery start in a case? Immediately after they have been served? Lastly, during discovery do you have to give all bank statements to defendant? Any grounds to object for privacy issues?

@marisolbriscoe951 5 жыл бұрын

I received a letter for Zauzar law firm for a car that was repossessed. My original loan came from Tracir Fianancial. The car was repossessed and sold. I am being asked to pay the deficiency which the balance seems incorrect. I plan on writing a letter but the creditor is no longer tracir Fianancial. If I do choose to settle after verifying the amount will it report to my credit? It’s for under $4500 . Should I get a lawyer?

@johngwatts 5 жыл бұрын

Marisol, If you are in AL and I assume you are dealing with Zarzaur, then give us a call and I'll be happy to look at the collection letter, any repo letter you received (should have one before and after the repo), and your credit reports. Then I can lay out some options for you and the good and bad of each option. Call us at 205-879-2447 and ask to speak to Carolyn or you can fill out our contact form here and I'll get right back with you. www.alabamaconsumer.com/contact-us/ Best wishes John Watts

@marisolbriscoe951 4 жыл бұрын

Alabama Consumer Protection Lawyers thank you! I will fill out form, I am just now seeing your response.