I bought a car in Jan. of 2008, from Blaynes Auto Superstore, in Albuquerque, NM, with financing secured from Drive Financial Services of Dallas, Texas.
I made payments of 345.63 for a year, then like so many other people, I was laid off in March of 2009, due to the bad economy. This story will read like so many others I have read.
After I came to the realization that I would not be able to continue making the payments, which I knew were high, due to my lack of credit, I attempted to try to adjust the APR as stipulated in the contract, with the dealership.
Upon my arrival at the dealership, I found that they had gone out of business, and the owner had skipped town. There was a man there who had been hired to liquidate the remaining asset's, and he told me that they had falseified loan applications for car buyers.
I then attempted to work something out with Drive, they told me they could lower the monthly payment to under $200.00 a month, on a month to month basis. However, they would not be willing to adjust the APR
So in the long run, the $11.656.00 loan would still cost over $20.000.00.
I then suggested a voluntary surrender of the vehicle, they said it would count as a repo. Thats fine, I would never again attempt to get financing for anything else. This happens to be the only time in my life I ever financed anything.
The rep on the phone said that when they repo the car, it will go to auction, and be sold. Blue book on this car, a 2006, Kia Rio, is between $7,000 and $8,000 dollars, leaving me liable for the difference.
It seems to me, that they could sell the car for next to nothing, and come after me for the rest. However, they can't just attach your wages, or garnish wages without a court order. I also found out, that they can't garnish unemployment benefits at all.
I think the point here is, PLAY THE GAME! Don't let your emotions get the better of you. Be polite with them when they call, no matter how rude or condesending they are to you.
They are not the Gestapo, they can't just come to your house, and take anything from you. They can't take money from you without taking the proper steps. Even though what they are doing may be criminal in some aspects, they still have to follow some rules.
Bigger companies have been brought to their knees by ordinary people. I would rather not have to deal with this, but I got myself into it. Primarily out of ignorance, and my perceived need for a car.
I've read dozens of complaints on this site, relating similar predicaments. We may feel helpless at times, but let me assure you, WE ARE NOT! I understand there is a class action law suit in progress, and I am certainly willing to join in that endeavor. I think most of just want to be treated fairly when we hand over our hard earned money to someone we trust at the outset.
This is not Medievel England, and there are no debtor prisons anymore.
Rio Rancho, New Mexico