Can Collections collect on a Repossed vechicle.

by a
(san diego, ca)

I had a car repo over a year ago in Oklahoma, with my mom as a co-signer, and collections has been calling her and harassing her, demanding payments or they will garnish wages, taxes and put up a lien. Can they do that? Is there anyway to stop the calls.

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Sep 23, 2010
Debt Collection Related to a Repossessed Car
by: Mary & Gerri

Thanks for submitting your debt collection question on our Q&A page.

Given that your vehicle was repossessed, I imagine that the debt collector is trying to collect what is referred to as a "deficiency". After your vehicle was taken, the lender probably sold the car in a public auction. If the car sold for less than the balance due on your auto loan, that balance due is referred to as a deficiency and you and your mother, since she co-signed your car loan, are equally responsible for paying that amount. Therefore, if it's not been paid, the debt collector can go after both of you for the deficiency. By the way, it's likely that the total deficiency that you owe also includes the costs the lender incurred taking your car back, storing it and auctioning it off.

Your mother is legally entitled to tell the debt collector not to contact her again, but stopping all calls and letters does not mean that the debt collector will not continue trying to collect what the deficiency. (You can read our advice on using a cease and desist letter to stop a debt collector.) So I suggest that the two of you figure out a way to pay the deficiency as soon as possible; otherwise, the collector may indeed pursue one of the actions it is threatening to take.

If you cannot afford to pay the full amount of the deficiency in a lump sum, find out if the collector would allow you to pay the amount in installments. If so, be sure to work out all of the terms of the installment plan and get them in writing before you begin paying on the plan.

Please share what happens with your situation in the comments section for this question. We are very interested in hearing how this turns out for you, and your experience can help others who are struggling with debt collectors.

Sep 25, 2010
incorrect information
by: Anonymous

I do understand the debt is owed that is not the problem I paid my truck (2001 blazer)off in full my mom's name is on the title HER car (2004 Saturn) was repoed they will not release the title on the blazer because she still owes money on the saturn. is this legal since the balzer loan was paid in full back in march of 2009. they went so far as to tell my mom they will repo the blazer and sell it to make up for the money owed on the saturn.

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