FinanceCreditLoans
ANSWERS: 1
  • Not one that I have ever heard of. Why would there be such a law? The credit union is selling their car, as it would have been collateral for your loan. When it was repossessed for, what I assume to be non-payment of the loan, it reverted or became their property to dispose of as they wish. According to the terms of any such contract that I have seen, the car is their property, in full or in part, until the loan is cleared. The loan agreement you signed incorporates clauses which give them the right to repossess the vehicle and dispose of it as they see fit. I am also certain that the laws in your jurisdiction back them up on this. They would cheerfully sell the car to you for the current sales price, if you were able to raise the cash. Also, since you defaulted on the loan, information to that effect will be submitted to a credit rating agency. If you are in financial difficulties, it is best to meet with the lender to see if you can alter the payment terms of the contract. Surprisingly enough, lenders are sometimes quite happy to do this, particularly with a home, since a continued flow of reduced payments is preferable to the expenses they incur repossessing and selling the property.

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