Q: My car was repossessed. I financed the car for $22000 paid $10000 they took it all for interest. Still owe 22k can i sue

A: I’m sorry you’re dealing with this frustrating situation with your car. A few questions should be addressed before you proceed. For example, under the law the lender must have provided you with notice of default and intent to repossess before repossession. Also, after repossession the lender must notify you of their right to redeem the vehicle and provide information any sale/auction of the car.

Before contacting the lender or retaining an attorney to sue, consider contacting the New York State Attorney General's office or a legal aid organization for assistance. They may be able to provide free advice as well as form demand letters you can use. Also, you can try to negotiate with the lender to reinstate the loan and return the car - this would be more likely if they are in breach of the law (e.g., the notice requirements set forth above).

If your car is sold by the lender, they will apply the proceeds from the sale and first pay the fees and expenses for repossessing and storing the car, then pay the rest toward the balance you owe on the loan.  If there is not enough proceeds from the sale to pay the loan, the lender has the right to sue you in court for the remaining balance on the loan for the deficiency. Thus, it is a good idea to create a paper trail and get ahead of this by attempting to get the car back with loan reinstatement. One option to to offer to reinstate your loan by clearing up any past due payments and paying all repossession costs, and then continuing to make regular payments on the loan. Good luck!