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I recently sold my car to carmax. After a month my financial instituion has sent me a bill
Anonymous3 views3 answers
I recently sold my car to carmax. They were very nice about the entire process. Carmax called the financial company and got the pay-off amount. It was less that what Carmax was going to give me for my car. Carmax gave me the difference between the payoff and what I sold it for. This was a month ago. I got an invoice from the financial company I had my car loan with asking for $900+ because they had provided Carmax with the incorrect payoff amount. The title of the car has already been passed on to Carmax. So the questions is, since it's been a month, do I have still have to pay this amount although it was the financial company's error. Please adivse. Thank you
If they released the lien, then you are left with an unsecured debt. Their error does not mean that you are relieved of responsibility for the debt. You may have an argument that the debt was paid in full if you are ever sued on it. Be prepared to argue that you paid off the amount owed and they released the lien. You may find them eating this cost/error.
[I am a Virginia-licensed attorney. This communication is intended as general information and not specific legal advice, and this communication does not create an attorney-client relationship.]
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Legally, the fact that the finance company made a mistake does not affect your legal obligation to pay the correct balance you owe. After all, if they collected more than you owed, you would expect them to refund the money to you when they discovered their error!
As a practical matter, it is much more difficult to collect an unsecured debt where there is no title involved than it is to collect on a secured debt where they have your vehicle title.
So what does this mean?
Well, you may be able to offer to settle this debt for less than 100% of the balance owed, if you are so inclined. Collection will be a problem for the finance company unless you voluntarily agree to pay.
Hope this perspective helps!
Sounds like a problem for the finance company, not you. If they accepted the amount tendered by Carmax and released the lien on the title, I don't see how that involves you, I would ignore it - but don't rely on my random thoughts, I don't practice law in the Commonwealth of Virginia.
I provide information as a courtesy - nothing said here should be taken as legal advice. If you need legal advice, you should consult local legal counsel.
