Legal Advice for a vehicle loan default

[AndyThoma]

A good friend of my wife and I is in some trouble. I have offered to help her because she (the friend) is an emotional wreck. I plan on calling the loan company and finding a lawyer for her tomorrow. I thought someone here might have a suggestion on how to go about helping her.

Here's the problem; she helped a boyfriend buy a $9k motorcycle. He had no credit, I assume, so she offered to help him. She actually took the loan out for him so the loan is in her name. The bike is also titled to her. The insurance is in his name. Well this already sounds bad, and yes it got worse. They made a verbal agreement that he will make payments to her each month. The bike was purchased in July, the first payment was in August. In the mean time they broke up. He paid some of august, like $100 short, and didn't pay at all for september. She can't get in touch with him and he isn't calling her. I told her to call Tony Sopanro for help, but she didn't find any humor in that. Matter of fact--the reason I am helping her is because she is still making excuses for him and can't bring herself to deal with this mess. She finally agreed to start dealing with the issue and I offered to help. I don't like seeing a good friend screwed over so I want to help her as much as possible.

Thanks for any help
Andy

 

[D Chapman]

I'm not sure on the Laws in UT, but in VA she would be required to have the insurance, for starters. Second, she is the owner. Her name is on the title, and the loan is in her name. So, she is at fault. Really, the bike is stolen, if he is not contacting her. But, I don't think ya'll care about that. To answer your question, at least in VA, there is nothing you can do but get the bike back and sell it, or pay the balance. Her credit is not effected until 60 days past due, most of the time.

 

[RoverChic]

so the loan is in her name

Andy is she primary and he is co-signer or is she solely on the loan. Is the loan thru a CU or a Bank? Who now has possession of the motorcycle? Looks like loan default to me. Who's name is on the title? Maybe she could try Civil under 10K, that's how it would work in Oklahoma. I would say maybe small claims court however each monetary limitation differs per state (i.e. in Oklahoma 4.5K is max for small claims all else goes civil) ..I hate to say it but I was there two years ago with a family member. I signed the loan papers solely it was my credit, when she failed to make her car payment the credit union came after me. However, cu versus banks do things slightly different. Melissa N

D is right on the insurance. Any thing that carries a lien (auto/moto/ect) has to be insured. Most lending institutions require that POI be faxed or mailed in within 30 days of financing. And if not the lending institution will do something called forced insurance which will only cover their end of the collateral...they add this onto the loan and it is very pricey. Generally increases the monthly payments significantly.

 

[AndyThoma]

So if she gave him permission to use it and now currently does NOT give permission for him to use it --is that theft? Or is it the fact that he's not returning the property to her--is that when it is considered stolen? And what does she have to do to prove withdraw of permission--and theft?

 

[AndyThoma]

The bike is in his possession but the title and loan is completely in her name. The remaining balance is $8800 and through a credit financing company that was available through the retailer.

 

[EricSiepmann]

This may sound odd, but bear with me.

Assume that title does determine ownership. She could hire a recovery firm, i.e have the bike repo'd, because it's legally hers. This solves the sticky issue of finding the ex, getting him to surrender the bike, potential retribution by him destroying the bike, the ex selling the bike illegally, et al. Have the recovery firm auction the bike off as well. All she has to due is keep current on her loan to avoid default and seizure by the bank. Worst case scenario is that she makes a month or two more of payments and then recoupes her loan amount after the auction.

Solves a lot of potential sticky problems. Gets the bike into her possession legally, limits any interaction with the ex, and keeps johnny law and the bank out of her business. Also, if he's there when it's repo'd, he'll assume it's the bank. All she has to say is that she was unable to continue with the payments. He can't deal with the bank, because the loan is in her name, nor can he deal with the repo men becasue he has no title. Finally, cuts down on potential legal bills if this has to settled in a court. Not to mention time saved.

Only thing left is to tell his insurance company that the bike has been sold. He loses premiums paid and doesn't get a theft settlement.

She'd be basically doing what the police and the bank will eventually have to do at a later date. Prevents the ex from dragging it out by lawyering up himself.

EwS

 

[Ron L]

Verify full coverage on the bike. Then run him over on the highway

 

[utahdog2003]

Have the recovery firm auction the bike off as well. All she has to due is keep current on her loan to avoid default and seizure by the bank. Worst case scenario is that she makes a month or two more of payments and then recoupes her loan amount after the auction.

Only her credit is still toast, as she has defaulted on the loan. Or to save her credit she would have to cover the 'gap' between the 8800 the bike is worth and the auction price, which would be way less than half.

Golden Rule: Ladies, never buy your fella his wheels. Gents, grow up, be a man and stop asking your woman to pay for your macho lifestyle.

"I don't know what changed! He seemed so sensitive when we were leaving the strip club..."

 

[EricSiepmann]

Only her credit is still toast, as she has defaulted on the loan. Or to save her credit she would have to cover the 'gap' between the 8800 the bike is worth and the auction price, which would be way less than half.

Only if she defaults on the loan. Which I suggested carrying until recovery. Once the bike is in her hands, she can sell it herself....

EwS

 

[LostInBoston]

No offense to anyone, but i cant stand women like this. Why is she letting herself get used like this. I think your wife should slap her friend and tell her to wake up. Her ex just stole a 9k bike from her and shes making excuses for him? Thats rediculous. She needs to call the cops, tell them her bike is stolen, then hit her ex on the head with a bat next time she sees him. done and done.

 

[Blue]

Situations like this occur all the time. Reminds me of my ex-wife and "her" Explorer that was in my name only. She can either pay it off for him or get it back. She should just go into the police station and explain her situation and provide any/all contact info for this chump. It's her bike, her responsibility, her liability, and he has it in his possession against her will. No different than if I asked to borrow your Disco to go to the corner store and I never came back. The police should help her out. In the meantime, she better make some payments or her credit is shot. The creditors don't give a damn what the situation is.

 

[RoverChic]

Why is she letting herself get used like this. I think your wife should slap her friend and tell her to wake up.

Amen Amen Amen!!!!

Andy: report the bike stolen just as Blue has said. Then sell it pay it off and hope that she learned her lesson. A very hard lesson to learn @ that. I once had an ex ask me to do the same aforementioned situation.

Matt: Melissa will you take a loan out (or at least co-sign) so that I can get a new car?
Melissa: Matt, dear do you see that front door?
Matt: Yes I do.
Melissa: Don't let it hit you in the ASS on the way out.

 

[bri]

This may sound odd, but bear with me.

Assume that title does determine ownership. She could hire a recovery firm, i.e have the bike repo'd, because it's legally hers. This solves the sticky issue of finding the ex, getting him to surrender the bike, potential retribution by him destroying the bike, the ex selling the bike illegally, et al. Have the recovery firm auction the bike off as well. All she has to due is keep current on her loan to avoid default and seizure by the bank. Worst case scenario is that she makes a month or two more of payments and then recoupes her loan amount after the auction.
EwS

Title is likely in the hands of the lender unless it is a home equity line of credit or some such. I would just report it stolen to the police and insurance, of course you might wish to ask some anonymous question of both first.

If she acts quickly her credit should be OK (with some possible leg work that is).

Brian

 

[curtis]

Take the contract and all ownership information to the dealer who sold HER the bike, get a duplicate key made, then go get the bike. She needs to pay up for the rest of August, September, and make a payment for October. If she does it will likely not affect her credit much or for long. As long as she does not default or go over 90 days out she is somewhat safe. Then she can sell the bike in the paper and pay off whatever balance (if any) after the sale.

 

[AndyThoma]

My wife and I both want to slap her around. She is a smart woman who is educated and runs a business of her own. But when it comes to relationships she tends to throw all of that out the window.

I agree, and I think she see's this too, we need to act now or her credit gets screwed. A couple of years ago I was laid off, well a few payments were late. Now I fully paid those CC's off and have savings and current on time morgage and car payments. But I still have late notices on my credit report for 7 years. It really sucks, you can pull yourself out of trouble by hard work and the walk the straight and narrow line, but your credit will be affected even years later.

Anyway I'm calling the creditor now to see what they suggest. Thanks for the suggestions, I'll post what I find out.

 

[AndyThoma]

Anyone want a good deal on a new bike? Maybe I should buy it, one more thing to crowd the driveway.

 

[Steve]

7 years for some late payments? I thought only bankruptcies were on your credit report for 7 years, judgments lasted 3 and late/slow payments were only 12-24 months.

 

[bri]

I don't know how long they last, but when I bought my first home in 1994, there was a bad credit note on there from not giving a cable converter box back to the cable company and that was from 1990. I fought with them and told them I had returned it. They asked for a reciept. I ended up paying $250 for a fucking cable box I didn't have, just to get the damned thing off my credit.

There were other things on there as well, about 80 hrs and many groveling/pleading telephone calls later and I had the negative stuff removed. You just have to get a human on the horn, be persistant, explain the circumstances and many times you can get them erased. It is a total PITA though.

With a police report of this incident and some paper work, I can't imagine that it would be that big of a deal. Especially if some for of payment is made each month and you contact the lender to let then know what is up.

 

[AndyThoma]

Bankrupcy for 10 to 15 years.

Loan default 7 to 15 years.

Late payments 7 to 10 years (even if you get a 30day reported, it stays on your credit report)

Yes it sucks, the creditors that happened to me I was in good standing with for 10 years before I got laid off. Never late, never more than 40% available credit. Think they gave a shit, or do today? Hell no, I paid them off and cut the cards up and refuse to shop at the stores that are part of the credit companies corporation.

 

[Meisterbr?wn]

Late payments show up on your credit report for 7 years. By the way, anything 30 days late or more will show up (if your lender reports it, some report everything, some don't). The later it is, the worse it affects your score.

I'd have your friend call the bank/CU and explain the situation, see if they can work with her at all. Defer a couple of payments, anything. The bike is hers (I think we are all in agreement) regardless of who has it right now. She is responsible for the repayment of the loan. If she just stops paying, they aren't going to care what the reason is. But if she gives them a heads up, she might save herself some serious dings to her credit score.

I second the motion to speak to an attorney, but attorney fees will add up quick and the only thing she should be worrying about is keeping current on the payments. It is all a temporary solution until she gets her hands on the bike and sells it. She should speak with the police too, this probably qualifies as "stolen" at this point. It's her property, he has it without her permission.

Good luck to you and your friend.