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Rights When Vehicle Voluntarily Surrendered (Consumer Law & Fraud)

Fri, 19 Dec 2008 16:32:00 GMT

My question involves an auto loan or repossession in the State of: CA

Can anyone tell me what rights I have when I voluntary surrender a vehicle? What balance am I responsible for paying after the vehicle is sold?

A little background on this. The vehicle was financed through Kaiperm C.U.. After 2 years we were putting more money into the car than it was worth and we were also down to one income. So we informed the company that we could not keep up with the vehicle's payments and would be surrendering it back to them. They gave no argument only. So we surrendered the vehicle and got a different vehicle with lower payments that we could maintain on a single income. Kaiperm reported the account as closed with no balance owed on our credit report. Great right? Wrong. Kaiperm was bought by Alliance C.U. who is now saying that after over 2 years we owe them over $11,000.

What are our right in getting this account cleared or settled:confused :?

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  • Fri, 19 Dec 2008 16:49:00 GMT(1)
  • ask them for an accounting.

    When a car is repo'd, either voluntarily or not, the lender will auction off the car for whatever they can. They will subtract that from the balance you owed on the loan. They can tack on fees required to do what they did. This is what you would have owed. Now, tack on interest and if included in your contract, penalties, and you have your debt.
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