Should I retain an attorney if a traded in truck has still not been paid off by the dealership and my creditors are coming after me? 9 Answers as of January 27, 2011

I traded my truck in on 11/30/2010 and as of 01/218/2011,they still have not paid it off. The dealer keeps telling me they are broke. I have made one payment of $601.00 since I traded it in, and I am currently behind yet another payment. The lien holder has now placed a $5000.00 insurance policy on the truck and added it to the payoff because I could not provide them with proof of full coverage, which I should not have to carry on a truck I do NOT have! This happens to be a dealership that I used to work for and I do not know if they are doing this on purpose or what, but I do not have another $601.00 to give to the bank for a truck that I do not have. But I do not want them to ruin my credit! What do I do?

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William C. Gosnell, Attorney at Law
William C. Gosnell, Attorney at Law | William C. Gosnell
Yes, hire a lawyer.
Answer Applies to: Tennessee
Replied: 1/24/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Turn them into the agency that is responsible for their license. This may not help your credit, but they have a responsibility to pay it off if they took it in on trade. You could also try a small claims action, but won't help your credit either. Dispute the report that you are delinquent with the credit reporting agencies, Experian, Transunion and Equifax. Their addresses are on the Web. This should help, but it will be a recurring problem until the loan is paid off.
Answer Applies to: California
Replied: 1/21/2011
Carballo Law Offices
Carballo Law Offices | Tony E. Carballo
Yes, you need to see an attorney. You may also contact the Department of Motor Vehicles that licenses dealers and file a complaint because what they are doing is definitely illegal. DMV can suspend their dealer license and take other action against the dealer. They might be doing the same thing to other people. If they are broke they should not have agreed to take your vehicle as trade in and agreed to pay off the loan. Promising to do something without the ability or intention to do it is fraud. Therefore, there might be fraud involved if they knew they could not pay off the balance of the loan and gotten free and clear title to the truck.
Answer Applies to: California
Replied: 1/21/2011
The Pedigo Law Corporation
The Pedigo Law Corporation | Brian T. Pedigo, Esq.
I see this happen often. If you are in California, you should sue the dealer and file a claim against the dealership's bond ($50,000 minimum bond required).

If you are in southern California, please contact me for a further consultation.
Answer Applies to: California
Replied: 1/21/2011
DiManna Law Office, LLC.
DiManna Law Office, LLC. | Dawn DiManna
You should consult an attorney who can review the paperwork and give you some specific advice.
Answer Applies to: New Hampshire
Replied: 1/21/2011
    Uriarte & Wood, Attorneys at Law
    Uriarte & Wood, Attorneys at Law | Robert G. Uriarte
    Get a lawyer to represent you on this.
    Answer Applies to: California
    Replied: 1/21/2011
    Maclean Chung Law Firm
    Maclean Chung Law Firm | G. Thomas MacLean Jr.
    If the dealer is in breach of the contract with the trade in and it is causing you financial damages, then you may need to file suit to recover against them from your damages. Since your liability for the truck has not been satisfied, you are still be liable for it.
    Answer Applies to: California
    Replied: 1/21/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    If you can't pay your debts, you should consider filing BK. If not, your collectors will attempt to collect and can sue you for any deficiency.
    Answer Applies to: California
    Replied: 1/21/2011
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