QUESTION
In Nevada can a collection agency garnish wages for a car repossesion?
Asked on Apr 24th, 2013 on Consumer Law - Nevada
More details to this question:
I voluntarily surrendered my truck for repossesion. They said they would auction it for a reasonable amount, and we would owe the balance. We originally owed $35k it was auctioned for $15k at less than a year off the lot brand new. Now they say we owe $33k. I am the sole provider for my wife and 3 young children. The debt has been sold to numerous agencies. Can they garnish my wages or did they assume the liability of the debt by purchasing it? My contract was with Wells Fargo, not 18 other agencies.
1 ANSWER
R. Christopher Reade
A creditor after sale of the vehicle can generally pursue the deficiency sum based upon the fair market value of the vehicle. You are of course welcome to present your own evidence of fair market value and to contest that the repo auction price of $15,000 was not fair market value. The creditor cannot garnish your wages unless/until a Judgment is obtained.
Answered on Apr 25th, 2013 at 3:35 PM