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Q:
How do we still owe for our repossessed vehicle after it was sold?

Our car was repossessed and we were told that they would sell the vehicle. We heard nothing from the company stating we owed them any additional money or any other type of correspondence. In July of this year we received a letter from a law firm acting as a collector stating we owed approximately $5,578 dollars. When the car was repossessed we only owed approx. $6,500. And how can they sell a good running vehicle for way under the blue book and what is owed? This has been a very stressful situation. -Tina

Tina,

According to the Federal Trade Commission, the sale of a repossessed car must be conducted in a “commercially reasonable manner.” This does not mean that they will get the highest possible price - or even a good price.

Since the sale price of your car apparently was not sufficient to pay the balance due, there is a "deficiency balance" remaining. You are be legally obligated to pay this deficiency balance. If you do not pay this balance, the creditor can possibly sue you in an effort to try and collect from you.

It might be worth your time to discuss your rights and responsibilities with an attorney.

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