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Article:
Repossessions - All Hope is Not Lost
Jacksonville Attorney - Lawyer,
providing experienced Consumer Protection, Family Law, Estate Law,
Employment Law, Business Law, and Bankruptcy Law legal
representation in Jacksonville, Hilliard, Duval County,
Nassau County and the surrounding Northeast Florida areas.
I often meet with prospective clients who are the
victims of unfortunate circumstances. Some of them have
had their cars or trucks repossessed and other have
voluntarily surrender the property back to the lender.
It always surprises me how little is paid for the
repossessed property at a later sale. Lenders oftentimes
sell the repossessed property for a relatively small
percentage of the purchase price and go after the
consumer for the difference. This difference is known as
a deficiency. I’ll give you a recent real life example
to see if you are surprised as well. A domestic car sold
as new in October 2007 for about $30,000 only brings
$10,000 at a private auction sale only seven months
later. The lender has given notice to the consumer that
he owes a $20,000 deficiency. For some people, this
deficiency shocks the conscience. We all know that cars
depreciate when you drive them off the lot, but who
would think that they lose two-thirds of the purchase
price in only a few months.
Fortunately, the law has some protections for consumers.
The lender is required to provide a specific notice of
sale and notice of right to redeem the property. The
consumer can redeem the property, i.e., pay it off and
take back the property, up until the sale.
Florida law also limits deficiency claims. If the
deficiency is calculated to be less than $2,000, there
is no liability for the deficiency. In our scenario
discussed in the first paragraph where the claimed
deficiency is $20,000, Florida law allows the consumer
to argue that the fair market value of the car was
higher than $10,000 at the time of the sale and
therefore, the deficiency should be decreased dollar for
dollar. Consumers may use published trade estimates of
retail value such as the National Automobile Dealers
Association blue book to argue that the true retail
value of the car was much higher. As an example, if the
consumer established that the car was worth $22,000, the
consumer would only owe a deficiency for $8,000 under
our scenario. That can make a big difference with
judgment interest rates at eleven percent.
Sometimes, the person facing the deficiency is a
cosigner. The law requires specific notices to be
provided to co-signers. If this notice was not provided
at the time of the sale, the deficiency may be completed
avoided as well. I hope this information has proved
useful. I am always seeking ideas for articles to write
that might be interesting to consumers. You can send me
an email or direct a question through my website at
www.fortheconsumer.com.
Disclaimer: The above Article
is intended to give you, the consumer, insight into various legal topics. This
information is not intended as legal advice, but rather helpful topical
information.
 If
you require professional legal services regarding
Consumer Protection, Family Law, Estate Law,
Employment Law, Business Law, and Bankruptcy Law issues, be proactive in
protecting your legal
rights by seeking the legal advice of
an experienced
Jacksonville criminal defense attorney
& lawyer. Contact
The Law Offices of
Steven M. Fahlgren, P.A.,
by calling
904.845.2255.
Jacksonville Attorney - Lawyer,
providing experienced Consumer Protection, Family Law, Estate Law,
Employment Law, Business Law, and Bankruptcy Law legal
representation in Jacksonville, Hilliard, Duval County,
Nassau County and the surrounding Northeast Florida areas.
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