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Debra
Debra, Lawyer
Category: Canada Law
Satisfied Customers: 100373
Experience:  Lawyer
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I financed an expensive truck about 8 months ago, but i am

Customer Question

I financed an expensive truck about 8 months ago, but i am finding the payments to high, and am now considering my options. i am almost certain that the sales agreement was conditional, which means the bank cannot sue me for the balance owing if i voluntarily turn over the truck to them. i need to be 100% certain of this, and i can't count on the bank to be straight with me, so how can i be sure?
Submitted: 2 years ago.
Category: Canada Law
Expert:  Debra replied 2 years ago.
Do you have the contract with you now?
Customer: replied 2 years ago.
yes, i do
Expert:  Debra replied 2 years ago.
Is it called a "Conditional Sales Contract" and in the body does it use this term?Do you know what this contract means exactly?
Customer: replied 2 years ago.
it does not, however on the dealer invoice, paragraph 4 reads: "Right, title and ownership to the motor vehicle shall not pass to the purchaser until the purchaser has paid in full the total balance due as described on the front of this agreement."
Customer: replied 2 years ago.
the credit agreement with the bank is more vague, it says that they may sieze the vehicle and/or sue subject to applicable laws.
Expert:  Debra replied 2 years ago.
It is a conditional sales agreement. The way this type of agreement works is that you don't own the vehicle until you've paid in full.And you are correct that in Alberta there is a seize or sue law that only applies to conditional sales contracts.
Customer: replied 2 years ago.
Okay, so I can be certain that if i choose to to do a voluntary repo the bank must take the truck back, and cannot sue me for the the balance of the loan after they auction it off...?
Expert:  Debra replied 2 years ago.
There is no obligation for them to take it back. They can seize or sue but not both. It is their choice. So they can say they won't take the car back and then can sue you.

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