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I'm Lucy, and I'd be happy to answer your questions today. I'm sorry to hear that this happened.
When you sign a contract to purchase a car, that's a promise to pay the full sales price with the interest. A used car is almost never going to sell for as much as the new car did. Most of the time, when a car is repossessed, the sale doesn't cover the full balance due on the loan. The borrower unfortunately does remain liable for that balance. The only exception is if your contract says repossession is their "exclusive remedy" in the event of default.
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Do you have any questions about this?
Asking them to come pick up the vehicle is a voluntary repossession. It unfortunately doesn't relieve you of the obligation to pay the remaining loan balance unless the bank signed something that said they were forgiving the remaining balance.
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It's a legal matter because you signed a contract asking them to finance the sale of the car. They're allowed to enforce the terms at any time before the statute of limitations expires. In Virginia, that's 5 years from the date you stopped making payments.