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Infolawyer, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 54766
Experience:  Licensed attorney helping individuals and businesses.
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My 20yr old grandson bought a 2009 chevy travers LS a year

Customer Question

My 20yr old grandson bought a 2009 chevy travers LS a year ago, drove it for 6mo and the transmission broke. it has been inoperable for 6mo. now because he doesn't have the means or money to fix the transmission at $3,400. He is unable to keep up the payments with the loan company and owes $12,000 dollars on it. If the loan company repossess the vehicle and sell it they might get $ 2,000 to $3,000 for it with a bad transmission. That would leave a $10,000 balance still owed from my grandson. Thats the situation he's in.
Legal Questions: 1) Is it legal for a loan company to refuse a used auto loan if the buyer wanted a warranty when he bought the car. The loan company told my grandson they wouldn't give him the loan if he added a warranty . Why ?
2) If he defaults on the loan now, and the loan company sells the vehicle for lets say $3,000 dollars with a bad transmission. Then requires him to pay a balance of $ 9,000 dollars on his current $ 12,000 dollar balance. What happens if he has no money and can't even make any payments on a $9,000 dollar loan ?
( The blue book value of the vehicle is $10,035 to $ 11,000 )
3) If he doesn't have any means to make further loan payments for the next 7yrs . Would he be able to dissolve this debt and clean up his bad credit history ?
4) What are his options , and what would you advise he do under these circumstances ?
Submitted: 8 months ago.
Category: Consumer Protection Law
Expert:  Infolawyer replied 8 months ago.

1. No, it is not a condition that may be added to a loan.

2. It cannot sell far below fair market value and seek excess damages.

3. He could file bankruptcy or if sued and has no assets, be judgment proof. comes off credit in 7 years anyway.

4. seek to negotiate a settlement for a reduced amount and a payment plan.

Expert:  Infolawyer replied 8 months ago.

Kindly rate me positively.

Expert:  Infolawyer replied 8 months ago.

thank you in advance.

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