Expert: Chris Ebert - 8/5/2009

Question
QUESTION: H! Thanx, in advance. I have a developmentally challenged friend. He gets soc security/SSI. He just bought a car. The dealership had
him get a $9,000 cash advance, from my friend's BofA credit card.
He has $190 to live on, after rent, car payment, &ct; NOT including
insurance and card payments. I don't see how he can pay the card.
I hear you can not garnish soc security; but can he be thrown in jail, considering it was a cash advance? He was in no way trying to steal, but he does not well understand, what we would consider budgeting. Yours, Bob Baker.

ANSWER: Bob,

Good news is that we do not have debtors prisons. They would have to prove fraud and given the circumstances that may be hard to prove.

Is there a way he can return the car or sell it?

---------- FOLLOW-UP ----------

QUESTION: H!
Matt knows that he must pay on his car payments, he wants the car.
But, he needs food, or can not survive, he has $190 on which to live.
I will call the credit card people, to see what can be done.
Can the credit card company reposes his car? I know they can not effect his soc security check.
I agree this was not a crime, the car seller was right there &ct.
I just want to know what the card people can do, for cash advance non-payment-$9,000, plus he is probably holding $6,000 additional
card debt.
What a mess. Developmentally challenged people should have more help,
than they are getting.
Thanx, in advance, Bob Baker.


Answer
Bob,

The money taken out on the credit card is unsecured. (I assume it is an unsecured credit card.) So they should not be able to repossess the car. But I also would not a make a big point of letting them know where the money went either.

Many credit cards have a hard ship program where they will cut the interest rates to 0-5%, shut down the credit card, and make monthly payments until satisfied. You may want to check on one of these programs.