NO SIGNED CONTRACT LENDER REPORTS A REPOSSESSION

Anonymous · ‎06-04-2009

My credit was 744 TU FICO and I have no negatives yet on my report, UNTIL TODAY. I was given a check by Meriwest Credit Union to purchase a car AFTER BEING APPROVED. After I p/u the car and gave the dealer the money, the lender DAYS LATER called because the loan collateral agreement was not signed. The actuall loan/collateral agreement papers. The guy was panicked and insisted I bring the car back to the lender, which I did. He stated that would resolve the matter. The lender has now reported the car as a repossession, that the balance is all due $32360. Did even deduct the any value for the car. That hit my score is several areas, repo,late,payment and 32,360 past due which dropped my Fico TU to 617. There is no signed contract and Meriwest is trying to tell me I will OWE 15K

for the vehicle despite the fact I gave it back brand new with 1000 miles on it. It has not been registered either as far as I can tell. I offered to write a check for $4700 and Lender is to give me credit for the car of $28,000 which is what I paid, less tax. That would pay the loan balance. This guy does not accept this today and remove the REPO.

Anyone who has/have experience with something like this, my position is their is no contract, Lender agreed to returning the vehicle was all they wanted. I offered to go above that ask for a fair value and I would pay the rest. In the end though I do not have a valid signed contract, it was not signed and so giving the car back is all that is required of me. Since Meriwest did not ask me to just sign it they apparently did not want me too. Their problem not mine. I then bought a new car through Chase, cost more since I had to go with a 2009, so my position is as well I have damages incurred in that I end up paying more as I could not get the same deal and pricing.No contract how can the lender enforce it, this is crazy. Anyone who knows the law or has experience please let me know about that.

Anonymous · ‎06-04-2009

You need an attorney. One that knows your states laws.

You will not find advice as accurate as you need in this forum.

Calicurli · ‎08-15-2009

Hi Brett,

I'm curious to know - what was the outcome of this?

I've PM'd you as well.

Calicurlee

Anonymous · ‎08-17-2009

Well I wrote agencies and they removed the account or Meriwest did I am not sure. Now Meriwst is sendin me a letter saying I owe 14k and it going to go to collections. I had the car for 1000 miles 32k deal and I owe 14k for one week and 1000 thousand miles. So it is ongoing and nasty.

Anonymous · ‎08-17-2009

@Anonymous wrote:
Well I wrote agencies and they removed the account or Meriwest did I am not sure. Now Meriwst is sendin me a letter saying I owe 14k and it going to go to collections. I had the car for 1000 miles 32k deal and I owe 14k for one week and 1000 thousand miles. So it is ongoing and nasty.

So you never got a lawyer?

I mean come on, situations like this, thats actually what Lawyers are good for.

A few hundred dollars, which you probably would have had recouped, would have had this handled. If it wasn't recouped the lack of aggravation would have made it worth it.

Message Edited by usmc58555 on 08-17-2009 05:37 AM

Message Edited by usmc58555 on 08-17-2009 05:39 AM

Calicurli · ‎08-17-2009

Ouch!

I am not sure if you live near or in the San Jose area, but there is a program called "Lawyers in the Library". If you call early enough on a Monday you can get a free, 20-min appointment with a Lawyer in the Martin Luther King Library. As a matter of fact, I am going to see them today after work about Meriwest.

If you'd like more info, you can google "Lawyers in the Library" or feel free to PM me.

Anonymous · ‎08-17-2009

Well I talked to a lawyer and at that time Meriwest removed the repo reports to the agencies. So there was not any harm done and my fico went right back up. However now I may have to get a lawyer if it goes back on or i get sued. It is more defensive at this time. Thanks for the lawyer tip. So what happened with you and meriwest, who are you talking too. Is the Chesboro Branch.

atxhunter · ‎08-17-2009

I recently had a situation with a local credit union. I purchased a boat for $32k and due to the markets my income took a drop and couldnt afford the boat anymore. I was trying to sell it but the credit union was pounding on my door so I had to give it back. They sold the boat for $16k(50% of book value) and had no signed contract. The only thing that was signed was the credit app and I have the purchase order with the terms unsigned. I talked to a layer about it and they almost picked up the case at no charge under a breach of contract but since there was no contract it was difficult for them to pick up all the cost and go after the credit union. I'm curious what the laws are regarding signed contracts and what the banks have to stand of if you send a debt validation letter to them? If anyone has had similar experience it would be nice to know the end result.

Calicurli · ‎08-20-2009

Good show! Glad you stayed on them, Brett. I have a couple of accounts with them and they have done some things that I told them weren't necessarily illegal, but reflect an unethical way of dealing with their customers. I actually regret signing up with them.

If you would not mind sharing, may I have the name of the lawyer you spoke with?

Yes, I had talked to a couple of people at the Chesbro Branch.

What happened to me was I had a vehicle with them for about 2 years which they repo'd for a payment late by 35 days. The odd thing was I'd been in contact with them two days before the repo, which happened late May. Even stranger, I received a letter dated 7 days before the repo stating they were marking my file to receive a payment by May 31st for the past-due monthly payment, but they still took it two days before the file was due to receive payment.

I am thinking of having a longer session with a lawyer because I saw information in my research stating if a lender had accepted late payments in the past and did not repo then (at one point, I had one month beyond my control when it was about 42 days late, but it got paid and the current month was paid on time), perhaps it is null and void. However, I'm not sure if the car being taken voided the original contract.

Also, I finally received my deficiency balance notice in the mail yesterday and since I do not have the ridiculous sum of money they are demanding within 10 days, I will have to make payment arrangements or take the chance they send it to an outside collection agency and I then settle with them. However, I am investigating settling the account because of the amount due (over $10K) and currently I am the only one working in my household.Plus, I do not know if Meriwest wil follow through on their threat/promise to bring an attorney into the mix.

For anyone else reading this message, what type of letter would you recommend I send to the Credit Union?

I am even considering retaining a professional debt settlement firm because of the large amount of the balance due. I understand that settlements look bad on your credit, but with what I've been through financially these past couple of years at this time the point is moot. Like so many others on this board, I used to be the type of person who paid bills early (including my previous car loan) but then life and the economy happened. I do feel that it will get batter soon, just have to weather this storm.