AboutMike Weikle Expertise Banking Lender Liability; Insurance Coverage; Consumer Rights; Bank Fraud; Criminal: White
Collar Crime; Fair Debt Collection Practices Act; Directors and Officers Liability
Experience Commissioned National Bank Examiner 7 years; President of Two Community Banks; Division Claims Specialist for American Bankers Association Sponsored Insurance Program; Carter Member of the Bank Fraud Team of the Office of the Comptroler of the Curency "OCC" (National Banjk Examiners); Attorney previously representing FDIC and Resolution Trust Corporation as well as consumers and commercial borrowers in claims against the banking industry; Former Data Processing Systems Examiner for the OCC; Expert Witness on variety of banking issues in both state and federal court.
Education/Credentials Certified Public Accountant;
JD -- West Virginia College of Law - Order of the Coif
Data Processing Training Old Dominion Bank and IBM
Question QUESTION: I own $14,200 on my car. I got an offer to move from hawaii to arizona. The hi bank is trying to hold me hostage asking for $5000 in order to release title to have the car shipped overseas to az
The cruzer is only valued around $8k so i owe more than the car is worth. I am making 4,000 a month now with no overhead and the bank refuses to release the car unless i pay $5,000 (granted this was 3months ago it went from $7K to $5 now but I have had to rent a car on top of making mpayments of $500 for a total of a grand a month! Is this legal? I am also having a had time to get credit for a new credit card since the banks are looking at late payments on closed accts years ago and it is making feel terrible when I know my credit is not that bad. I dont know what to do. I cant keep renting a car for $500 and paying a $420 car payment too. I know if I voluntarily turn in the car i owe the balance after auction, but I cant sell it right since I still owe the bank the balance and it would have to be paid in full in order for me to sell it to someone else? Any help would be appreciated.
ANSWER: If the Bank is claiming they have the right to refuse to release title, it is likely set forth
in your loan agreement. Find a buyer for a reasonable market value price for a private sale. You can do this using Kelly's Blue Book on the Internet. It is a free service. If the Bank refuses to release title for whatever amount you negotiate, it would likely have trouble enforcing any deficiency balance if you turn over the car to the bank if they refuse to release the title. As to any balance left on the car after you sell it, tell the bank you will sign a new note at 6% simple APR and make payments until the balance is paid off. If the bank refuses, leave the car with them because they would be acting in bad faith to not take a fair market value for the car with your promise to make payments (at a payment you can afford to make).
If you leave the car with the bank and they sell it for less than what you could have sold it for, it would be difficult for them to come after you for any deficiency on the original loan. If they do, find an attorney that is willing to sue the bank on a contingent fee basis for their bad faith and failure to sell the vehicle on a commercially reasonable basis. The bank should accept the private sale you make as it is going to be a better price than the bank will sell it for as a repossessed vehicle which substantially lowers the value of the vehicle.
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QUESTION: You are a wealth of knowledge so thank you in advance. My other question is this: I am in AZ and I have stored the car at my elderly mothers home in HI, so I can't sell it since I can't show the car. is there a way to lease or negotiate another car with the intention of refinancing the car in hawaii with the new car loan? or since I am paying $500 plus a month for the last 3 months to get around try to lease and just leave the car with the bank. Even though I am making a great salary, they still want $5000 (originally months ago they wanted $7,000) plus i have to ship the car for another $1600 and also throwing money down the drain renting a car. I also tried to refinance the loan with a bank here, but again without seeing the car they cant do anything. I also tried to up my credit limit but they have to wait another 3 months since I just started my new position a couple months ago. Very frustrated and defeated, and I just feel like turning the car into the bank and calling it a day. I am bleeding money for months paying car and rental payments. I appreciate any advice.
Answer Go ahead and negotiate the purchase of a new car before you suffer a drop in credit rating if you are finally forced by financial circumstances to turn the HI car over to the bank because they would not release the car on a reasonable basis. Put the HI car on Craig's list so you can show the HI car loan will be paid off after you sell the HI car. Don't throw good money after bad, and don't turn over the car without having first financed a new car purchase and had it on Craig's list until the next car payment is due. You might also request the bank to allow you to make interest only payments for a couple of months while you sell the car.
Do you know anyone who will show the car for you in HI?
