Legal Questions

Can bank auction off my car and then still pursue me for the balance?

Car was repossessed in August of 2014. I was told by the bank that the car was sold at auction and that the remaining balance would be written off, however I recently was served for the remaining balance of the car loan. Can they do this? If so, I might need representation.

Posted - on 01/10/2017 | Connecticut

Answers (1)

Eric Foster

1 Contributions

Yes they can. A write off of a debt is an accounting action related to whether the loan is an asset of the lender. It does not change the legal status of the debt as a legally enforceable obligation. There are laws limiting how cars are repossessed in CT. If they violated the law you may have a defense. Talk to a CT lawyer.

Posted - on 01/10/2017