Consumer Protection Law

My son's tractor has recently been repossessed for

This answer was rated:
My son's tractor has recently...
My son's tractor has recently been repossessed for delinquent payment. He has record of making the payments that are #348.00 per month on a 5 year note that has a payout date of February 2017. The outstanding balance is 6,000.00 approximately on the original note of $22,000.00.
The repo company will not allow him to pay the delinquent... Read full answer
My son's tractor has recently been repossessed for delinquent payment. He has record of making the payments that are #348.00 per month on a 5 year note that has a payout date of February 2017. The outstanding balance is 6,000.00 approximately on the original note of $22,000.00.
The repo company will not allow him to pay the delinquent costs to make the account current and continue with the loan. They also are going to auction the tractor and told him to get the tractor back would cost $10,500.00 and if at auction there was not a high enough sale then he would have to pay the balance.
Do you know if there are ways to keep it from going to auction and to allow paying the delinquent balance and continue making payments in North Carolina?
Show More
Show Less
Ask Your Own Consumer Protection Law Question
Answered in 1 hour by:
4/14/2016
Brent Blanchard, Esq
Category: Consumer Protection Law
Satisfied Customers: 1,975
Experience: Thirteen years' experience in consumer transactions and litigation
Verified
Thank you for your question. Sorry to hear about the difficulties.NOTE: This is not legal advice but is general information for educational purposes only (or possibly amusement if yours is a truly hypothetical question). Experts here cannot recommend any specific course of action, and no attorney-client relationship or privilege is formed by posting on this PUBLIC forum. By continuing, you confirm that you understand and agree to these terms. Loans secured by equipment in North Carolina are usually governed by Article 9 of the Uniform Commercial Code as codified in Chapter 25 of the North Carolina General Statutes. N.C. Gen.Stat. § 25-9-109 (2005). There can be exceptions but they usually arise in odd situations with odd loans (often do-it-yourself jobs) with odd contractual terms. that is rare.Under that law, the lender has a right to auction the collateral, then subtract all costs of sale (advertising, auctioneer fees, preparing the item for auction, etc.) so long as the whole process is "commercially reasonable." IF there is any money left over after the sale, paying costs, and paying off the loan, then the former owner gets the excess. That is also rare in these days of loans amortizing the loan balance down far, far slower than the value of the property depreciates in value. That is the seldom-discussed disadvantage of those "affordable monthly payments" which are affordable mainly because the term of the loan is pretty long. And generally, if an auction is conducted mostly the same way as everyone else in that locality does them, it will most likely be found to be commercially reasonable. North Carolina is pretty harsh, too--if the sale is public and fully complies with every requirement of G.S. 25-9-601 and the sub-sections following, that sale gets a "conclusive presumption" that it was indeed commercially reasonable. Conclusive is worse for a potential challenger than a "rebuttable presumption. You can present evidence to rebut the second kind of presumption, but you cannot overturn a conclusive presumption. Those are the rules the legislature there has set.Stopping these auctions can be tricky. One problem is that many, many loan contracts give the lender a clear and strong right to "call the loan" after the borrower defaults. That means the whole balance is due right now (well, at a certain deadline) and there is no *contractual* right for the borrower to reinstate the loan and resume monthly payments. Thus the repayment of the loan in full is usually impossible because the equipment is now worth less than the loan balance, and no other lender will fork over enough money to pay off the original loan plus late fees and attorney's fees and whatever else has been stacked on the amount due.So, usually, the only way to stop such and auction is to pay off the new and improved and larger-than-it-was balance in full at certain number of days before the auction. Please give me a few minutes to finish researching whether NC has any right for the borrower to "redeem" the collateral or otherwise stop the sale. The first place we usually look for that is in the contract itself, then we check the law to make sure what's in the paperwork is really allowed under state law (and in the case of a collateral loan, the applicable portions of the Uniform Commercial Code as enacted by that state).Thank you.
Ask Your Own Consumer Protection Law Question
Here is some more information:NC law provides some steps to ensure a collateral auction is "commercially reasonable":N.C. Gen.Stat. § 25-9-627(b) (2007) provides that:A disposition of collateral is made in a commercially reasonable manner if the disposition is made:(1) In the usual manner on any recognized market;(2) At the price current in any recognized market at the time of the disposition; or(3) Otherwise in conformity with reasonable commercial practices among dealers in the type of property that was the subject of the disposition.N.C. Gen.Stat. § 25-9-627(b)(1)-(3). In the case of Hodges v. Norton, 29 N.C.App. 193, 197, 223 S.E.2d 848, 851 (1976)., the sale of a tractor at auction was NOT commercially reasonable. Time keeps me from going into the details, but I suggest you read it here: https://www.courtlistener.com/opinion/1372977/hodges-v-norton/NC law allows a debtor to make a written request for an accounting of the loan once a year for a charge not to exceed $25.00 NC Gen Stat § 25-9-210. The creditor must respond within 14 days. There is a requirement that the debtor be given 10 days notice before the auction (N.C. Gen. Stat. § 25-9-612), but that's as far as the debtor's rights seem to go.It appears that the only way to "redeem" collateral is by paying off the loan in full, plus all costs and attorney's fees as discussed above. NC Gen Stat § 25-9-623. Right to redeem collateral. NO time limit before the sale is given, so "before" the "disposition" could be "on the courthouse steps" or at the auction house just before the auction is opened. But payment must be in full. That would include the fees for the auctioneer showing up.I have not found anything more favorable in NC law.However, it might be worth looking into the remedies in NC Gen Stat § 25-9-625, if there was some failure to comply with the laws governing these auctions. Minor non-compliance is protected by another part of the regulatory scheme, but IF there is some defect in either "perfecting" the "security interest" or in following the repossession and auction procedures, the borrower has a few remedies in that law.Thank you. I hope this helps you understand these portions of North Carolina law regarding loans secured by equipment. Please rate this answer as one of the three top faces or stars, and then click "SUBMIT". This is how Experts here get credit for our time and work. A rating in the bottom two faces/stars (or failing to submit the rating) is a sort of "ding" on my performance here, even for giving a correct answer. I strive to give an honest and informative answer for you, so I would appreciate recognition of my good faith efforts with a positive rating.
Brent Blanchard, Esq
Category: Consumer Protection Law
Satisfied Customers: 1,975
Experience: Thirteen years' experience in consumer transactions and litigation
Verified
Brent Blanchard, Esq and 87 other Consumer Protection Law Specialists are ready to help you
Ask your own question now
Still looking for an answer to your question? 
Similar Q&As
My vehicle was repossed with approximately 2000 + 500 fees
My vehicle was repossed with approximately 2000 + 500 fees outstanding. Withing 2 weeks I paid approximately 1600 with promise to pay the oustanding balance 2 weeks later. However, one week after payi… read more
Alex J. Esq.
Alex J. Esq.
Managing Attorney,
Doctoral Degree
16,382 satisfied customers
I have a question regarding car repossession and can it be
Good Morning, I have a question regarding car repossession and can it be removed from my credit and how. I signed for a car for my son and learned that he allowed it to be repossessed without any noti… read more
Law Educator, Esq.
Law Educator, Esq.
131,934 satisfied customers
Wrongful Repossession S. Peek323 Kingsbury St, Oxford, NC
Wrongful RepossessionJames S. Peek***@******.***(###) ###-####323 Kingsbury St, Oxford, NC 27565May 2014: Purchased new Ford Fusion at Nelson Ford, Martinsville, VA. Financed vehicle at Fifth Third Ba… read more
Phillips Esq.
Phillips Esq.
Attorney,
JD
23,047 satisfied customers
Stop searching for answers—
Good evening Ms. Wilson. I had a Kobota tractor repossessed
Good evening Ms. Wilson. I had a Kobota tractor repossessed in North Carolina for 45 days delinquent. Monthly payments being made. … read more
Phillips Esq.
Phillips Esq.
Attorney,
JD
23,047 satisfied customers
I told the repo man to leave he would not the police told me
I told the repo man to leave he would not the police told me if I left in my car I would be arrested was the two repo men supposed to be made to leave after I told them to… read more
CalAttorney2
CalAttorney2
Attorney,
Doctoral Degree
8,845 satisfied customers
We talked earlier about my repossessed auto. I have another
We talked earlier about my repossessed auto. I have another question. Am I responsible to pay the interest on the original loan or just the initial loan amount after auction?… read more
P. Simmons
P. Simmons
Lawyer,
Doctoral Degree
1,312 satisfied customers
Get a personalized answer to your question. 
Debtor - Creditor legal dispute: We purchased a vehicle and
Debtor - Creditor legal dispute: We purchased a vehicle and it was repossessed and sold 2 months later at a private sale for $2,500.00 with no prior notice to buyer and co buyer and sold the vehicle f… read more
Law Pro
Law Pro
Doctoral Degree
19,000 satisfied customers
My 28 yo daughter lost her job a year ago, and has been living
My 28 yo daughter lost her job a year ago, and has been living beyond her means on spousal support until September, when that was over. She has a 2009 BMW that she bought a year ago for $21,000 with a… read more
LegalGems
LegalGems
Juris Doctorate
17,714 satisfied customers
I recently had my car repossessed and within 24th hrs of it
I recently had my car repossessed and within 24th hrs of it being picked up by the repo company, which I tried pleading with to leave my car with me since I was about to make a payment of the back pay… read more
Alex J. Esq.
Alex J. Esq.
Managing Attorney,
Doctoral Degree
16,382 satisfied customers
Still looking for an answer to your question? 
wE BOUGHT A CAEGORY 1 28 HP JOHN DEERE TRACTOR AND WE ARE A
wE BOUGHT A CAEGORY 1 28 HP JOHN DEERE TRACTOR AND WE ARE A LITTLE BEHIND ON OUR PAYMENTS , ALL IN ALL WITH ALL THE EQUIPMENT IT WAS ABOUT 27,000.00 WE PUT 5000.00 DOWN . THE THING HAS BEEN BROKE DOWN… read more
Phillips Esq.
Phillips Esq.
Attorney,
JD
23,047 satisfied customers
We were 62 days past due on an auto and paid the entire past
We were 62 days past due on an auto and paid the entire past due amount online. The banks website said payments before 4PM EST post the same day. Since we paid on a Saturday, the payment should have p… read more
socrateaser
socrateaser
36,168 satisfied customers
Is there a certain amount of time between not paying your car
Is there a certain amount of time between not paying your car payment and the time that a car dealer can repo your car?… read more
Law Pro
Law Pro
Doctoral Degree
19,000 satisfied customers
Stop searching for answers—
My name is XXXXX XXXXX I wanted to find out what my legal rights
My name is XXXXX XXXXX I wanted to find out what my legal rights are after a repossession of my vehicle. Just a little history.. I had a stroke in August of last year and I called the people that fina… read more
HCLegal
HCLegal
Partner,
Doctoral Degree
429 satisfied customers
When a car is repossed in Virginia on tuesday. I pay note off
When a car is repossed in Virginia on tuesday. I pay note off on thurs they accept but the car was sent to north carolina on wed. Lender said they were to keep car at place tha took it for three days … read more
Tina
Tina
Attorney and Counselor at Law, Mediator,
Doctoral Degree
31,168 satisfied customers
Hello, I have an account with you, but not at my computer under
Hello, I have an account with you, but not at my computer [email protected] on the unlimited subscription monthly plan. I am using my other e-mail [email protected] I posted a question concerni… read more
Law Educator, Esq.
Law Educator, Esq.
131,934 satisfied customers
Get a personalized answer to your question. 
Is it legal for the owner of a car dealership to have extra
Is it legal for the owner of a car dealership to have extra keys after he sells car? And Is it legal for him to use that key to repo my car himself and not allow me to take out my personal belongings?… read more
Marsha411JD
Marsha411JD
Doctoral Degree
21,086 satisfied customers
My friend died December 15. He was paying on credit each month
My friend died December 15. He was paying on credit each month for a tractor. A week after he died I notified them of his death. When I called them they said they would have to have their legal depart… read more
Ronald Frederick
Ronald Frederick
Principal,
Doctoral Degree
86 satisfied customers
I have had a tractor repossessed from CNH Capital. I have tried
I have had a tractor repossessed from CNH Capital. I have tried to speak with them to have them reinstate the loan for the back I owe and reasonable repossession fees. They have told me that I dont ha… read more
Sam
Sam
Attorney,
Doctoral Degree
10,701 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Ely

Ely

Counselor at Law

3,436 satisfied customers

Private practice with focus on family, criminal, PI, consumer protection, and business consultation.

Barrister

Barrister

Lawyer

1,813 satisfied customers

Attorney,19 years experience in consumer protection areas

P. Simmons

P. Simmons

Lawyer

1,312 satisfied customers

16+ yrs. of legal experience.

LADY LAWYER

LADY LAWYER

Lawyer

749 satisfied customers

Consumer Lawyer

RGMacEsq

RGMacEsq

Lawyer

664 satisfied customers

Licensed Texas General Practice Attorney

RobertJDFL

RobertJDFL

Lawyer

548 satisfied customers

Experienced in multiple areas of the law.

John

John

Lawyer

519 satisfied customers

Licensed and practicing attorney experienced in consumer protection law.

< Previous | Next >

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less
Ely, JD

Ely, JD

Consumer Protection Lawyer

More than 20 years of experience in Consumer Protection Law

57,467 Satisfied Customers

Pearl avatarPearl, Assistant