Deficiency Judgement

[Stephanie Short]

What is the name of your state (only U.S. law)?
Michigan. Vehicle was purchased on contract 4 years ago. Vehicle broke down over 4 times within 6 months. Dealer gave 30 day warranty, and fixed the vehicle once. After being stranded for the 4th time this single mom with her kids in tow, called the dealer and told them to come get it, she was not going to fix it again, she could not afford it. They came & got the car. 4 years later she receives a notice that her wages will be docked till the $10,000 bal. is paid off. This vehicle was a very used Grand Am, worth less than $1000. No notice was sent of a hearing, no attempts to contact her were made. What recourse does this single mom have? Thank you for any advice.What is the name of your state (only U.S. law)?

 

[racer72]

What recourse does this single mom have?

You have 2 options, pay the bill or file bankruptcy. You did what is called a voluntary repossession. Lemon laws do not apply to used vehicles and if they did, you just can't walk away from the vehicle and owe nothing.

 

[HomeGuru]

What is the name of your state (only U.S. law)?
Michigan. Vehicle was purchased on contract 4 years ago. Vehicle broke down over 4 times within 6 months. Dealer gave 30 day warranty, and fixed the vehicle once. After being stranded for the 4th time this single mom with her kids in tow, called the dealer and told them to come get it, she was not going to fix it again, she could not afford it. They came & got the car. 4 years later she receives a notice that her wages will be docked till the $10,000 bal. is paid off. This vehicle was a very used Grand Am, worth less than $1000. No notice was sent of a hearing, no attempts to contact her were made. What recourse does this single mom have? Thank you for any advice.What is the name of your state (only U.S. law)?

**A: racer is correct and you gave the car back to the dealer and lost any claims you may have had. Furthermore, the FTC Used Car Rule, UDAP, Michigan UCC and any express warranties from the dealer could have helped you.