 Bank Seizes My Car After My Son is arrested driving it!!
Question:
My 19 year-old son was arrested for possession for having small amounts of three drugs. He was driving my car at the time and the police impounded my car. They released my car, but my lender has seized it and is planning on auctioning it. I’ve never been late on payments, and since I am the owner and wasn’t the one arrested, I don’t think the bank has any right to do this. What can I do to stop this?
Answer:
Banks have authority to accelerate a loan if it comes to their attention that the collateral has been endangered. It’s called “negligent entrustment.” Now, how did the bank find out about your son’s arrest in your car? It’s quite possible someone in the DA’s office or even the arresting officer notified them, hoping to get a great deal on your car at auction.
If your car sells for more than you owed on the note, the bank must give you the extra money. The bank really doesn’t want to do this. It’s in their best interest to get exactly or just a little under what was owed on it and it’s more than likely the bank will take sealed bids--which means the loan officer will call his buddy who regularly buys cars at repossession and give him a heads up. But, since by law the bank must tell you how much your car sold for (“notice of the sale”) and a court must to confirm the sale, if you object to the sale, the bank may be held accountable for failing to obtain top dollar.
Now, here is where you may be able to seize control of the situation:
Before the auction, get two separate appraisals of your car stating its value. Send copies of the appraisals to the bank along with a letter stating should the bank not get appraisal value, you will sue them for failing to act in a proper fiduciary duty / role to protect the loan. This might be enough to call the auction off. And if it isn’t at least you’ll be getting a fair price and have a down payment for your next vehicle -- one which you will never, ever let your kid drive.
Atlanta DUI Lawyers Clark & Towne
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