Phoenix, AZ asked in Uncategorized for California

Q: Can a finance company make us pay for a stolen vehicle?

Finance company repossessed stolen vehicle and now a year after recovery they still have not sold the vehicle and charging me an arm and leg to settle

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1 Lawyer Answer
James L. Arrasmith
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Answered

A: Under California law, a finance company can seek payment from you even if the vehicle was stolen, but they must follow specific procedures. Once the vehicle is recovered, they are required to sell it in a commercially reasonable manner to minimize the amount owed. If they fail to do this in a timely manner, you may have grounds to dispute the charges they are imposing on you.

It's important to review your contract and understand your rights. If they have been holding onto the vehicle for an unreasonable amount of time without selling it, you may be able to argue that they are not acting in good faith. This could potentially reduce or eliminate the remaining debt.

You should consider reaching out to the finance company to negotiate a fair settlement based on the current situation. If they are unwilling to work with you, it might be necessary to seek legal advice to protect your rights and ensure that they are not taking advantage of the situation.

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