topic Re: car repossesed in Auto Loans

car repossesed

Anonymous — Wed, 02 Dec 2009 07:33:03 GMT

had vehicle repoed in 2004 dont remember the summons but my wife must have gotten it judgment date was 2005 didnt start looking till i wanted to buy a home the judgment was filed for 14000 which i thought nothing of now that im thinking about it the amount owed has went up to 20000 i asked there lawer today for a copy of the contract he said being its so old he doesnt have it so is there anything i can do about this

Re: car repossesed

Anonymous — Wed, 02 Dec 2009 14:41:02 GMT

Once a judgement is entered, the original contract is no longer relevant.

The court awarded the judgement amount. They probably allowed for an interest rate to accrue against the unpaid judgement amount meaning it has been a growing balance due over the years.

But again, they are no longer required to provide copies or worry about terms of contract. They have a judgement. They are now collecting against a judgement, not a contract.

Re: car repossesed

llecs — Wed, 02 Dec 2009 18:21:47 GMT

To add, not sure about other states, but VA will list the principal amount at that point the judgment was filed and it will list the interest rate and interest accrued up through the judgment date. Of course, interest accrues beyond that up until it gets paid. They'll also list the legal fees. $6000 in additional fees and interest isn't that bad, relatively speaking. Calculating simple interest, that's just over 10% per year. The real rate would be below that if you factor in compunding. The default rate in VA is 18%.

I'd be concerned about a garnishment at this point. You may want to check your state's SOL on collecting on a judgment.

Re: car repossesed

Anonymous — Thu, 03 Dec 2009 07:03:48 GMT

@llecs wrote:
To add, not sure about other states, but VA will list the principal amount at that point the judgment was filed and it will list the interest rate and interest accrued up through the judgment date. Of course, interest accrues beyond that up until it gets paid. They'll also list the legal fees. $6000 in additional fees and interest isn't that bad, relatively speaking. Calculating simple interest, that's just over 10% per year. The real rate would be below that if you factor in compunding. The default rate in VA is 18%.

I'd be concerned about a garnishment at this point. You may want to check your state's SOL on collecting on a judgment.

FYI: There is no compounding of interest in any type of consumer loan or judgement. Interest accrues against principal balance. Interest is never allowed to accrue against interest. Only a financial deposit (savings, cd, etc) can pay compounding interest.

Re: car repossesed

llecs — Thu, 03 Dec 2009 15:21:51 GMT

Good to know. Thanks.