Complaint Review: Wachovia Dealer Services - Burlington New Jersey

 You made a legal agreement where they agreed to loan you several thousand dollars to purchase a car.  In return you agreed that you would make a specific payment, at specific intervals, for a specific amount of time as well as pay them Interest and putting the car as collateral.

There was nothing in this agreement that said you could just walk away if you could not(or did not) want to continue to make payments.  What you did by handing it over to them was do a voluntary reposession.  The effect of this is identical to a regular reposession, with the exception that some of the repo costs will be lower due to them not having to come and get it.

What does this mean to you?  First it shows up as a Reposession on your credit.  Next, by law they are required to sell the car at auction and apply that amount to your loan balance.  Now, if the car was sold for more than the loan balance you get the difference back.  But since the average car gets about 1/3 to 1/2 of it's value so that is rare.  The other side is that after they deduct the amount of the sale from the balance, and their is a balance remaing you are legally bound to owe that balance.

If you fail to pay off that balance they have the legal right to go after you.  This could be through Collection Efforts, or if that fails they can file a suit against you in court.  If you loose in court they have the legal right, depending on your State, to possibly Garnish your Wages or attach your bank account. 

Now I will say one thing..you left off one very important word.

In about 1 or 2 weeks Wachovia Dealer Services sold the Silverado for than it was owe.

Was it sold for Less or More than was owed?  If it was less then just look at the comments above.  If it was more..do you have anything in writing that shows that?  That is are you including any possible late fees, the fees for the reposession and auction?  Those alone could add up to several hundred dollars and if this has been more than a couple of years it could be at $2000.

Who told you, you don't owe the $2000?  The loan agreement YOU signed states that they can sell the repo and charge you the difference in what's owed and what they get for it.  They will have also added in the repo fees and towin. It's legal and You DO owe it.  You sound like a deadbeat.

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Joe, you are totally confused about the car buying process. First of all Wachovia Dealer Services is a lender, not a dealership. That is why you were directed back to the dealership when the lender discovered that they could not issue the loan without additional down payment.

As to the issue at hand, when you told the lender to come pick up your truck because you couldn't afford it any more, then that is considered a "voluntary repossession". The lender takes the vehicle, with your permission and keys, sells it and deducts the proceeds from the remaining balance on the loan. If the vehicle is worth more than the outstanding loan balance plus penalties and fees, the lender will send you a check for the difference. If the vehicle is worth less, then you are responsible for the deficiency amount plus fees and penalties.

When you don't pay, the balance keeps increasing. It can be reported on your credit report for 7-1/2 years from the date of the repo (voluntary or not). If the lender has a judgment against you, the judgment period can be much, much longer. Look up your name in the public records to see if Wachovia Dealer Services has a judgment against you.