Repo Company Sued For $5 Million Over Half A Tank Of Gas
24.05.12
"Victoria Jean Church-Dellinger filed a $5 million class-action suit in federal court against Ally Financial Inc. for keeping the half a tank`s worth of gas in her 2008 Pontiac G6 when it was repossessed.
`It`s the same as if you left your jacket in there and they didn`t return it to you,` Brian Parker, her Bingham Farms attorney, said in an interview. `"You can`t take someone`s coat or fuzzy dice, and you have to return the gas.`
Church-Dellinger 43, wants more than $5 million, which represents three times the fair market value of all gasoline taken from Michigan residents by the Detroit-based automotive financial services company over the last six years."
DetroitNews.Com
The price of gas has skyrocketed the last couple of months, but it hasn`t quite reached the price of $5 million for half a tank`s worth of gas.
This may seem like a frivolous lawsuit, but Dellinger makes a valid point. The financial company should reimburse the owners of reposessed vehicles for any gasoline still in the tank.
Baytown TX. Picking up one of the most reposessed vehicles in the state of Texas. This is not a fact it is just one repo mans opinion. Enjoy ...
In Iowa can a vehicle be immediatally reposessed after missing a payment?
Aug 25, 2008 by rdfrtz@yahoo.com | Posted in Buying & Selling
depends on your purchase agreement, but usually, yes.
Don W | Aug 25, 2008
It depends on what it says in the contract you signed.
Scott H | Aug 25, 2008
What happens if you let one car be reposessed so that you can buy another?
Sep 20, 2006 by AJ | Posted in Buying & Selling
First, a little background.
Me and my husband bought our first vehicle in September of last year. We had been using his father's Ford Expedition before that, and he needed it back. Me being pregnant, we panicked. We didn't really do our research or think clearly about the decision and kind of went with the first thing we saw, in fear of being without a car.
We bought a 2006 Saturn Ion. We are ready to become pregnant with our second child, and found a Ford Explorer that we really want. BUT we owe $5000 more on our car than it is worth. Making our finance amount go from $16000 to $21000. The bank will not finance that much for the Explorer because it isn't worth that much.
We are desperate. What would happen if we went ahead and got the Explorer, without trading in our Saturn, and then let the Saturn be reposessed?
Other than the obvious tarnish to credit. We can't afford two car payments, so it's one or the other.
Thanks!
Thanks for that man, I have one kid. Jeez. Anyway... I guess what I really need to know is, can they reposess the Explorer as well?
Repossessions never look that good on a credit report. And if both are financed through the same bank, some banks can and will actually repossess both cars, even if you fall behind on one. If I were to see that on your credit application if you wanted to rent one of my condos, I would probably decline your application.
Rather than deliberately mar your credit like that, I would suggest a little patience and take some steps to ensure you can afford the car you really want. Among those:
1. Wait to buy the new car. Even if it's a used one, another one will eventually come along - one that might even be a better deal.
2.Over the next few months, try to pay down that negative equity on the Saturn by making extra payments or sending in extra money with your payments. Be careful, though, because some car contracts, particularly those made through dealers, have penalties for prepayments like that. But assuming it doesn't, something as simple as rounding a $365 payment up to $400 is usually doable for most people and can save interest and cut months off a car loan.
3. Does it really have to be a Ford Explorer? There are lots of similar vehicles in that class that could be a better value.
4. Perhaps the value you are being given on your Saturn is the trade-in value at the dealership, not the retail value. Maybe you could sell it yourself for retail and pay off most, if not all of the loan balance and then be able to afford your Explorer. My wife and I found that most dealers will only give us $6k for our car, but we can easily resell it for $11k. We're putting it up for sale at around $10k which should ensure a quick sale, and we pocket the extra $4k, rather than the dealer.
Do not fall prey to consumerism and get yourself in trouble. Show a little patience and determination, and in the end, the payoff will be worth the wait.
Chris H | Sep 20, 2006
When the bank reposses your car, they will most likely auction it off. They will put that money towards your loan and then you will still have to pay the rest of the loan off...also, it's really not worth ruining your credit. It's very easy to ruin your credit, but very hard to get it back. Try to sell the car for as much as you can and buy a used car.
cary_bell_2002 | Sep 20, 2006
You'll probably loose both your vehicles and never get a loan again. You're better off you try to sell the ion outright and see what you can get for it, pay off the loan, then get the explorer♥
♥USMCwife♥ | Sep 20, 2006
The same thing hapopened to us. We had two cars and couldn't afford both payments so we got rid of both cars and bought another one with a lower payment. Yes ours were reposessed also. Now our credit is not good either.
buzy_bug_452000 | Sep 20, 2006
This is why prices are so high on cars. We pay for ours & yours.
When they will repossess car, then sell at auction for less than half of what you owe, then they will get lien & the courts can deduct from your paycheck or attach to your new vehicle or items you own at home. Think carefully!
mulligan's 1st mate | Sep 20, 2006
YO wouild default on the loan and the bank would reposess it. They are supposed to have it auctioned off and pay that amount on the the amount owed. Than usually they sue you fo rthe balance. This can result in much higer than the current balance a some banks purposely sell the car at a smaller amount to a dealer they are connected with , collect a gratituty form him and sue you for the difference.
Legall unles you sign the car over to the bank informing them of the your intentions and give them a chance to work it out the sherriff's offic eis suposed tosel the car to the higher bidder after giving notice to you, and as notic ein the newspapers of your default. I would bite th ebullet and pay for it and wait on another car. you'll probley come out ahead as you are going to pay for it either way. If the banks take sit they may for example;If the car is worth 12,000 sell it for 3000 and leave you oweing the other 9000 plus court costs, auction costs, and you;'ll still find the car on one of their cat lot son sale for 5000.
Think it over as it's likely you will end up paying either way and driving it while paying for it is better.
otherworldtrader@yahoo.com | Sep 20, 2006
If you must do this, take the car back to the bank and give them the keys, they won't like it, your credit will be damaged but a least you did it face to face. Expect to pay a higher financing rate due to the negative credit report. Good luck.
jack w | Sep 20, 2006
It is unlikely that you will loose both vehicles if you surrender your Saturn to the finance company unless they are financed by the same company. However you may have a hard time getting financed with one outstanding vehicle unless you have a good debt to income ratio to show the creditor that you can handle both car payments. Otherwise they are not likely to approve financing on the explorer if they don't think you can handle both payments. If you do surrender the saturn they will auction it off, apply the profit to the balance, and make you responsible for the balance. They can take you to Court, put a judgment on your property or garnish your wages. Unless you file for bankruptcy you are responsible for the balance after the auction.
catsrule | Sep 20, 2006
stop with the children and start thinking of life on lifes terms
motnaleek | Sep 20, 2006
Big mistake. Keep the POS you have and pay it off. The kids can fit in the Back?
Paul | Sep 20, 2006
No they can not repossess the explorer as well it has nothing to do with the collateral on the original loan. It will hurt your credit however make sure that the first loan is processed completely before letting the other one go. I see a few people do this don't expect to be able to get another loan for a couple of years and then you will still pay more interest then without the repo. Also don't let people tell you there is a difference between a voluntary and involuntary repo there is no difference. The bank that has the Saturn loan will come after you for the deficiency you should try to pay it then it would show as a paid charge off which looks a little better. One other thing to think about right now the 2006 explorers have great rebates I don't know your situation but if it is only $5000 negative equity they can trade you out of it in a new explorer without having to ruin your credit. I hope this helps a little.
tisha m | Sep 20, 2006
The lender of the first car loan will come after you after the repo to pay CASH for the difference between what they sell the car for at auction and the loan amount. The auction price will be much less than what you can sell it for. PLEASE PLEASE sell the car your self and save 7yrs of bad credit. A repo is almost as bad as a bankruptcy. You insurance rates ( all kinds of iinsurance) will be higher, employers may not hire you because of bad credit rating, any future mortgage will be much more expensive.....no good can come of a repo.
Besides it is poor character for anyone to promise to repay a loan and then voluntarily not do so. You are about to be parents and the best way to teach children good character is for you to live it as an example.
Perhaps you can refinance the car loan until you can sell it. Also call the lender and explain the impending birth and ask for an extension, or delayed payment, or wha help they offer. THEY don't want you to have a repo either, it cost them more money than a few delayed or rescheduled payments. Whatever you do don't stop making payments and refuse to answer their phone calls. They will help you but will loose all concern for you once you won't talk to them.
My wife works for a big lender and tracks down vehicles for repo and collects on late accounts. I promise start this way first and they will work with you as much as they can. If nothing else works you can make a "voluntary surrender" at a dealer that will save $200 but is still a repo on your credit report. By The way if you still have the repo and some emergency comes up where you have to borrow money you are screwed, and screwed for the next 7 years.
Anthony M | Sep 21, 2006
What happens to you financially when your car gets reposessed?
Jul 09, 2007 by dluke68502 | Posted in Buying & Selling
My boyfriend's car may get reposessed. We want to know if he can get taken to court, owe the financer money, or they just they back the vehicle. Also how does it affect credit?
The lender will have the car repossessed, after which many states will give you a certain amount of time (usually 1-3 weeks) to redeem the vehicle by paying it off. Some lenders will allow you to get back the car by paying the back payments and repo costs. If you don't the car will be sold at auction and the money applied to what you owe. Usually you'll still have a balance due, for which the lender can chase you and, yes, go to court. A repo is one of the worst things that can happen to a credit rating. The short answer is all 3 things you mentioned will happen.
shelcom | Jul 09, 2007
when it is repossesed it is given to the federal government so you wouldn't get it back unless you went it bought it from the repossession place. it will affect his credit score
jetsboi92 | Jul 09, 2007
his credit just went to hell. unless he bought it from a tote the note lot. if he bought from there they just wont let him buy there again.
iwill | Jul 09, 2007
This has nothing to do with the federal government. If they repo his car and sell it, he will still owe them money and they can take him to court and sue him for what he owes, plus the court costs, etc. Oh, and his credit goes right in the crapper. But if he's facing repossession, he probably doesn't have a stellar credit history anyway.
Scott H | Jul 09, 2007
It is not as bad as defaulting on your payment to your exorcist and getting re-posessed. ;-)
some_yank | Jul 09, 2007
Unless the car is payed off, it goes on your credit record, and will sit there and destroy your credit, and chances for a new credit card, loan or anything else.
Sledge | Jul 09, 2007
His credit is trashed. Could be if they resell the vehicle and it sells for less than what he owed some types of loans they could come after him for the difference. However the bf probably has nothing to come after in the 1st place and it'd be like squeezing blood out of a turnip...
Scott | Jul 09, 2007
Should I purposely have my car reposessed?
May 25, 2007 by cjsimmons269 | Posted in Buying & Selling
I have owned my current vehicle for 10 months. I desperatley want to trade it in for a new vehicle. However, trading it in would mean adding 6k of negative equity. This makes the new vehicles price much higher than it is worth and requiring $1800 down. However, if I do not trade in my vehicle, my payments would be lower and I would only need $500 down. Yes I know this would be horrible to have on my record. However, I actually had a repo 3 years ago (and was still able to finance a vehicle). Not to mention by keeping this newer vehicle and making all successful payments it should prove that I was responsible.
Dont do it. Youve had 1 repo allready. 2 repos and you are not going to see the inside of a new car w/ out a lot of money. Ive been in the second chance finance, car business. With 2 repos you will need alot of cash,maybe paying cash for the car all together,or you can go to a note lot or a drive time and buy a car thats sure to break down due to its poor condition and high miles.Theres also interrest rates,IF you get approved the rates will be sky high.
Deal w/ what you have,establish your credit THEN trade it in
Rikitikitavi | May 26, 2007
Will GAP insurance somehow help me if I voluntarily have my car reposessed?
Jun 03, 2007 by T.J. B | Posted in Buying & Selling
I purchased a new 2007 Ford Focus in February of 2007. I'm 19, and this is my fourth car. I do not have good luck with vehicles at all, and this car is no different. What makes this car different, however, is that I financed it through a bank instead of paying cash like I did for my other cars. My credit is not great, but good for my age because I've built it up.
My problem, however, is the car is the worst I've had. It's constantly in the shop, and things constantly break. I've contacted Ford about having them buy it back and after waiting for a long time, they told me they won't because they're just minor things all covered under warranty.
I will not pay $470 a month for a brand new car that doesn't run like one. My last step is taking it back to the bank. I know the consequences, but I'm willing to take the hit to get rid of this headache. I owe too much on the car to sell, but I have GAP. My question is, is there any way this might cover the balance of reposession?
You said your credit is good for your age because you built it up. Don't take a huge step backwards at this age, good credit is an asset and will only help you down the road.
Check your states Lemon Law, see if you qualify. If not, i suggest either: sucking it up, try to sell it privately and getting a new one, or trade into the dealer for a new one (you'll lose money, but it's nothing compared to a repo).
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