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socrateaser, Attorney
Category: Business Law
Satisfied Customers: 37829
Experience:  Retired (mostly)
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I borrowed $12480 from a company based in new york that lends

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I borrowed $12480 from a company based in new york that lends to small businesses. The payback is a daily payment ACH from my business checking. I defaulted with a balance around $4000. They took two of my vehicles that were listed as collateral. They tacked on a bunch of fees and had their attorney contact me saying if I didn't pay $8500 that they would sell my vehicles and file suit to recover anything the sale of the vehicles didn't cover. We reached an agreement of payment over a 3 month period I paid them in full. some of my payments were late, but I paid them in full. Without my knowledge they sold one of my vehicles even though we had a payment agreement. They continued to let me make my final two payments knowing one of my vehicles was sold. I got an email from the company stating the debt was paid in full and that I could go pick up my vehicles that were taken. Now, I went to pick up my truck and only one is there. The other one was sold. Now what do I do?

Since the vehicles were collateral for your loan, the business had the right to sell, in order to pay the debt. If you paid the debt in full, including any repossession, interest and attorney's fees, and the lender sold the vehicle after you paid in full, then the repossession was unlawful, and you can sue for damages in the amount of the fair market value of the vehicle.

if the value of the vehicle was $5,000 or less, then you could sue in small claims court to recover your money. If the amount at stake is greater than $5,000, you will need a lawyer.

However, you may be able to recover the value of the vehicle from the lender by simply having a lawyer send a letter demanding payment for the vehicle -- since the alternative is a lawsuit that the lender cannot possibly win.

If you need a link to a reputable lawyer referral service, please let me know if my answer is helpful and I will be happy to provide. And, if you need further clarification or assistance, please feel free to ask and I will try to help.

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