Q: I am being sued by a payday loan company for defaulting on a loan. The registration for my vehicle was used to secure
The loan when I first applied. They continued to allow me to refinance the loan and take more cash after I no longer had the vehicle. They never asked for updated vehicle information and I wasn’t able to update the information since it was an automated process. Can this information be used to fight this judgment? The court documents even list the vehicle which I no longer had on the date of the transaction.
A:
Based upon the information provided it is my opinion that your no longer having the vehicle at the time additional extensions of credit were made will not help you defend this action. If you got the money, you will need to repay it. The creditor's lawyer might use the fact that you no longer had the security the lender bargained for by claiming that you defauded the lender by not disclosing this fact before applying for additional credit and that it was your obligation to retain the vehicle until all loans were fully paid off. I recommend that you consider settling this claim as soon as possible to minimize your liabiity for the lender's legal fees.
My opinion is based only on the information you provided. If other facts exist, my opinion might differ.
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