ONEMADLADY
Winchester,#2Author of original report
Mon, February 03, 2014
Credit Acceptance came and got the car.( I found out Friday. Not the dealer.).. Credit Acceptance sold this debt to a collection agency in another city in Va. So Credit Acceptance is working for the dealer ship scum like gold star. figures.
I not finished yet....
Crucible
Arizona,#3Consumer Comment
Fri, January 31, 2014
" She said "that not legal either"."
To begin with, getting legal advice from used car salespeople is about as effective as consulting a dog or a cat.
" So I told him he had to come get it cause I was turning the tags in. He said ok, we will be there Friday night. "
You seem to be confused about what happened. You took out a loan on a used car. You did not trade the car in, nor did you sell it. You just handed it back to the place where you bought it. Since you don't mention it, I'm assuming that you did not sign any document that indicated you were selling the car back to the dealer.
Stop and think about this. You had a contract with the finance company that you borrowed the money from. Under that contract, you were required to repay the amount you borrowed, plus the agreed upon interest. If you had actually sold or traded the car in, the loan would have been repaid as part of the transaction. You did neither of those things. As far as the lender (and anyone else) is concerned, you just stopped paying what you owed them.
The likely scenario is this: The car was reported returned to the dealer as a voluntary repossesion. The car was sold at auction (for peanuts) and the lender considered the loan to be in default. The lender at some point filed suit on the remaining balance (with interest and fees) and a default judgement was entered against you. You should have been notified of that court action, not that it matters that much, since you admit that you just stopped paying.
Bottom line, you can't just stop paying on a car loan without making arrangements to have the loan payed off. As you have seen, it will come back to haunt you. Your problems with the seller have nothing to do with your contract with the lender. They are two entirely separate entities.