Voluntary Repossession in 2008

[mysty147]

Hi Everyone,

My name is Mysty and I'm from Connecticut. While I am not new to credit repair forums and credit repair itself I came upon this forum and liked the organization of topics and the ease of navigation here, so I thought i would join and possibly help out and seek some help with my new challenge, my auto repo.

I am struggling with finances like many others in the USA, and I did not want to let my car go. I only bought it to help get my credit back on track. In hind sight I regret that decision because honestly there are other ways to produce the intended desired result and in effect I damaged my credit worse then it was because of the repo but, to late now.

Now the fight begins.

This is the time line so far:

Notice of intent to repossess was sent 10/30/08;

Car repo'd in Nov 2008 - voluntary but that doesn't matter;

Notice of Plan to Sell Property - 12/10/08 stating that the car would be sold "sometime" after 12/26/08. I never received the required where, when, time, date letter for the sale unless the bank thinks that this letter covers that issue.

Explanation of Calculation of Surplus or Deficiency - 2/7/09 stating the car was sold on 1/12/09 for $2700, I was given the FMV according to CT state statutes = $5402.50...way to generous but ok?! The "aggregate amt owed listed at $9222.17 LOL No explanation of how that amount was calculated. I'm sure that's interest, blah blah accrued.

All said and done they want $4352.17 from me, i owed them $8000.00 and payed $7550.00 in 24 months. Original loan amount was a little over $12,000.00.

I called the bank today and asked them to send me a detailed summary of how they came to the the amounts they say i owe them. I got the run around and got nothing but a settlement offer of $4000.00. I laughed at the nice lady on the phone and told her without a breakdown of charges that I would not settle anything at this time since I have two credit card accounts with the same bank, she threatened to recommend termination of those accounts. I told her that that was ridiculous as I have never defaulted on my payments with my credit cards. She wasn't listening to me at all.

I think they will be suing me. That's ok, they have to do what they have to do. What I need to do is be prepared or turn it over to my lawyer.

I am self employed and have no assets, so they can't go after me that way.

Does anyone know if the 60% rule, the one that's states if you have payed 60% of the loan on the car applies universally? I have checked all my local laws and can't find anything stating that rule anywhere. I did read that somewhere on whychats site and creditboards site. Also, should i try and fight the CRA's so soon. It is on all of my reports.

Any input would be appreciated!

Thanks

Mysty

[Trish]

Hey Mysty

Just want you to know I'm not ignoring you.
I did see your post a couple of days ago and have just been really busy.
I will try to get back to you as soon as I can.

I had to deal with a repo not too long ago and I do know about the 60% rule still looking into it to see if I can find which states that applies in (I know I saw it somewhere! :p )

[Trish]

Have you looked through your state's UCC, Article 9? I have not had much time to look but if there is a 60% rule in your state, it should be there. I did some looking on CB but all I could find was "most states" honor this rule. Have not found a list or anything concrete yet.

Also I know you said you looked at Why Chat's site but did you go through the repo deficiency links?

I know that may not be much help but try reading really well through those links and when I get some time, I will try to as well.

I also checked on the bank closing your CCs just because of this repo and found out they can do that. So, just want you to be aware of that.

[mysty147]

Thanks to Trish for responding.

Let me reveal the bank involved in my repossession. I am dealing with Chase bank, more precisely NRG-National Recovery Group/Chase Bank.

I have no idea if NRG is embedded/contracted to Chase or a division of the bank...here-in lies my question, since i am being harassed by NRG.

I have been contacted by phone after i wrote them a letter, delivered CMRRR telling them to contact me by mail only...citing the FDCPA law. They even call my boyfriend's cell and his business phone, even on the day the letter was signed for.

Has anyone here dealt with Chase/NRG for an auto repo?

I am treating NRG as a CA...but they has stated in previous letters that they would turn this account over to an outside CA if i don't do what they want...which is to comply to their wishes LOL

And since they never validated the loan....should i demand validation to Chase?

This is a fresh repo so I'm not sure if i should let it age, not sure this is wise as I don't think they would have a problem suing me.

Please help!

mysty:mad:

[mysty147]

Okay Trish, I found the CT UCC rule after my brain nearly turned to mush. Here is the section mentioning the 60% rule:

(e) A secured party that has taken possession of collateral shall dispose of the collateral
pursuant to section 107 of this act within the time specified in subsection (f) if:
(1) Sixty per cent of the cash price has been paid in the case of a purchase-money security
interest in consumer goods; or
(2) Sixty per cent of the principal amount of the obligation secured has been paid in the case of a
non-purchase-money security interest in consumer goods.
(f) To comply with subsection (e), the secured party shall dispose of the collateral:
(1) Within ninety days after taking possession; or
(2) Within any longer period to which the debtor and all secondary obligors have agreed in an
agreement to that effect entered into and authenticated after default.

Now I need to interpret what all this means.

Mysty

[Trish]

A couple of issues to touch on here.

Need to figure out about NRG and if they are a CA OR an in-house collector for Chase. What sucks here is if they are an in-house collector then the don't have to follow the FDCPA regarding ceasing collection calls after a DV letter.
On their collection letters, do they give the mini miranda at the bottom? (we are debt collectors attempting to collect on a debt blah blah) OR does it have chase's name on the letter?

So, another thing (if they are an in-house collector) is that if you sent a debt validation letter they will pretty much ignore that. You have to treat them like an OC and send them a debt verification letter since OCs don't validate, they verify.

Either way, you are entitled to an itemized list of charges.

Now, with the 60% rule.
According to Why Chat, the 60% rule, in those states that have it, is determined by subtracting the PAYOFF figure at the time of repo from the purchase price, if the payoff is less than 40% of the original purchase price than the 60% rule applies.

Remember, the payoff figure is NOT the same as the loan balance, it is the amount that is shown in your REQUIRED accounting of the proceeds of the sale that establishes your deficiency.

So, see if you can crunch the numbers and find out exactly how much was owed at the time of the repo.

[mysty147]

Ok....

When they send letters the letterhead is as follows:

CHASE (with logo) RED FLAG!
Chase Auto Finance
National Recovery Group
address

I am pretty sure this is an "in house" collector. Which like you said are not bound by the FDCPA.

I have not sent them a debt verification letter yet. I guess that is my next step, that way they have to disclose an itemized bill. And yes interest is accrued monthly so the balance is creeping up.

After looking around some and reading up on WhyChats posts, since this is a fresh repo, I have to wait to do anything about a repo deficiency for 2 years after figuring out the math i def have a deficiency so that's a good thing.

Thanks for your help Trish, I appreciate it!

Mysty

[Trish]

So you mean that after you checked the balance owed and everything that you do have a deficiency?? (you didn't pay at least 60%?)

If so, ugh. Sorry. That sucks.