Unlike home ownership, college, and even credit cards, most people need a car. Unless you have access to public transportation or funds to rideshare wherever you go, a vehicle is essential to get yourself to work, your kids to school, and go about your daily life. This is why auto loan deficiency has become such a lucrative business for debt collectors. There’s an endless supply of auto deficiency accounts for them to acquire and make a profit from.
What Happens When You Default on Your Auto Loan in Texas
Debt collectors acquire deficient accounts from banks and other lenders much like the groups that buy up old credit card debts. What is an auto deficiency account? It’s a very specific type of debt that occurs when:
- A borrower defaults on their auto loan.
- The vehicle is repossessed by the lender.
- The lender sells the repossessed car at auction, but for less than the balance owed.
- The borrower is responsible for paying the balance.
Two of the most common Plaintiffs in auto loan deficiency suits are Crown Asset Management and Westlake Financial. If you’re being sued by either of these companies, your lender, or any other debt collection agency, your best chance at prevailing in court is to hire an attorney with experience in auto loan deficiency suits. Of course, it’s even better if your debt lawsuit defense attorney has won cases against Crown Asset Management, Westlake Financial, and other debt collection agencies of their ilk. Attorney Ben Trotter fits the bill.
Auto Loan Deficiency Suit Defense
When you work with Ben Trotter and Debt Legal Defense, we examine your case and determine the best defense strategy for your unique circumstances. A party bringing a lawsuit for an auto loan deficiency, whether it’s the actual lender or a debt collector, must comply with the Texas Business and Commerce Code in order to prevail. This means:
The best way to prevail as a Defendant in an auto loan deficiency suit is to show the Plaintiff did not provide adequate notice. A party bringing a suit for an auto loan deficiency must send proper notice that it intends to sell the vehicle. The notice must be provided at least TEN days in advance of the intended sale AND strictly comply with the Texas law (“substantial compliance” is not enough).
Sale of Vehicle
A Plaintiff must also prove that the vehicle was sold in a “commercially reasonable manner.” Some facts to prove the whether or not the car was sold in a reasonable manner include the method of the sale, the location of the sale, and whether or not multiple people were able to bid on the car.
Statute of Limitations
A suit for an auto loan deficiency must be brought in four (4) years.
Finally, much like a credit card lawsuit, many debt collectors will have a tough time proving their case. If the Plaintiff bought the debt from the original lender, they may not have all the correct documents to prove their case.
If you have been sued on an old debt from a car loan, contact us today. While we do not guarantee any results, we do guarantee to fight hard to help you with the relief you need.