Car Keys

Auto Loan Deficiencies

The Sequoia Law Firm assists borrowers who have been sued (or will soon be sued) by auto lenders claiming a deficiency balance on an auto loan after repossession.

In California, if you surrender your vehicle (involuntary or voluntary for whatever reason), and you have a loan for that vehicle, the lender will sell the vehicle at a public or private sale. 

Often, the money received by the lender at the sale is not enough to cover the unpaid loan balance plus the lender’s costs.  The difference is called a “deficiency,” and the lender will not hesitate to come after you for it by sending letters, making collection calls, and eventually filing a lawsuit to recover the deficiency balance. If you do not respond to the lawsuit, the auto lender will obtain a deficiency judgment against you, and it may garnish your wages or levy your bank accounts.

In California, auto lenders must comply with various notice requirements after a repossession occurs, and if they fail to do so, or the notice is inaccurate, the lender cannot collect any judgment in court. 

When you work with The Sequoia Law Firm, we examine your case and determine the best defense strategy for your unique circumstances.  If a lender is threatening to sue you, or you have been sued following a repossession, do not ignore the problem and do not assume you have no defenses.  Even if a judgment has already been entered against you because you did not respond to the lawsuit, contact us to discuss your options.