Are you facing an auto loan lawsuit? When an auto loan goes unpaid, there are a few potential consequences. The first is typically repossession of your vehicle. But in some cases there can be further litigation involved in an unpaid car loan. Lenders have rights in these situations, but so do borrowers. As a borrower, you may have a case against your lender or collection agency due to a variety of circumstances and situations. A debt relief lawyer can assess your case and help you exercise your rights. 

If you’re being sued by your lender or a collection agency over an unpaid car loan balance, here’s what you need to know. 

You Can Still Be Sued After a Repossession

You may have thought that once your car was repossessed, that would be the end of it. Unfortunately that is not always true. If you owed more on the vehicle than it was worth, you may still owe a balance to your lender. 

After lenders repossess vehicles, they sell them for as much as possible, often at auctions. If the lender sells the car for less than what you owe on the loan, you are still responsible for the remaining balance. If you don’t pay that portion, your lender may sue you for that amount. 

Don’t Ignore an Auto Loan Lawsuit

If you’re served with an auto loan lawsuit, it is crucial that you address it. Ignoring it will lead to much more serious consequences. If you fail to respond to the lawsuit by the required date, the court will likely order a judgement against you. A judgement may result in a number of financial consequences such as wage garnishment (money is taken automatically from your paycheck), property liens (seizure of your home or property), and even bank account garnishment (money is taken from your bank accounts). 

Seek Legal Help Right Away

How do you respond to an auto loan lawsuit? By contacting an experienced debt defense attorney. The sooner you seek legal help the better, because you only have a limited amount of time once you are served with papers. A debt defense lawyer will help you file a response to the lawsuit and evaluate your case. In many cases there are ways to build a case in your favor against the lender. 

Possible Defenses in Auto Loan Lawsuits

There a few possible defenses your lawyer may be able to use, such as: 

  • Payment errors. At any point during the loan term were any payments applied incorrectly at the fault of the lender? Were payments applied on time by the lender? If there are any errors by the lender that resulted in payments being processed incorrectly or late, this may work in your favor. 
  • Calculation errors. Were payments or interest amounts calculated incorrectly at any point during the term of the loan? Calculation errors are another possible defense that could result in a dropped or lessened lawsuit. 
  • Damage during repossession. If the vehicle was damaged during repossession by the towing company, there is a possibility that you don’t owe as much as the lender believes, if you owe anything. 
  • Excessive fees for repossession or storage. If you were charged excessive or unreasonable fees for the repossession or storage of the vehicle after repossession, it may be a defense in your case. 
  • Failure to Give Notice. Your lender is required to give you notice before the vehicle is sent to auction. If they did not provide notice or don’t have proof of the notice, you might be able to win your case. 
  • Reasonableness of the Sale. When your car is sold at auction, it must be done so in a “commercially reasonable manner.” Many times, the only information the Plaintiff will have is that it was sold for a certain amount, but not the manner in which it was sold. 

Contact Debt Legal Defense: Benjamin Trotter, Attorney at Law, P.C.

Have you been notified of an auto loan lawsuit against you? As soon as you receive notice, contact Benjamin Trotter, Attorney at Law, P.C. You only have a limited time to respond, so don’t wait. We can evaluate your case and help you get debt relief from the lender or collection agency who is suing you. 

Call 210-468-1008 or contact us to schedule a consultation. We look forward to helping you fight back against creditors or collection agencies.