Commercially Reasonable Sale

Recently I returned a 2002 vehicle to J.D.Byrider,CNAC, I was up to date on payments, yet a constant struggle / insurance etc. Now they send me a letter os auction sale,and will garnish my wages for any difference in payoff. I thought I was doing the honorable thig. Took excelent care of the car, Even left it with a full tank of gas.

Diane

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Hi Diane,

The sale would have to be conducted in a ‘commercially reasonable manner’ for the court to award a deficiency.  According to NCLC’s “Collection Actions” (1st ed., p 76):

“The original secured party will have some difficulty proving that all aspects of a repossession sale were commercially reasonable, including the notice provided to the consumer, the advertising made to the public, the sale’s timing, and the method of disposition.”

Also, if the collection letter was sent by a different company (or even the same company with a different name) than the original creditor, then you may have an FDCPA violation for the threat.

Read: Collection Scare Tactics

Thanks for the questions and hope this helps.

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.