More details to this question:
I currently have my auto loan through wells fargo. My credit union had issued a stop payment on a payment I had made to wells Fargo without my authorization in February. I was notified of this on March 11th. As a result of that stop payment, wells Fargo came and took my car, and will not release it back to me unless my entire loan is paid off for approx. $6200. My credit union has stated that the stop payment was their error, and they are willing to contact wells Fargo directly to try and clear this up. Unfortunately I don't have $6200 to pay them, but am more than willing to pay my entire past due balance including whatever fees are added on. Wells Fargo is refusing to speak to my credit union, and they're telling me that the decision has already been made..nothing can be done about it. What should I do? Do I have any grounds for a lawsuit against my credit union or wells Fargo being that this situation is a result of an action out of my control?
1 ANSWER
Yes it sounds like you do have grounds. Morever, if this is the first time your has been repossessed the lender is required by law to let you reinstate the contract by paying the current balance, late fees and repossession fees, etc. You are NOT required to pay the entire remaining balance on the loan.
You can then obtain reimbursement of those extra fees from your credit union.
Since this seems like a rather easy legal problem to resolve, my concern is I am missing some important detail such as that somehow the stop payment was your fault. So I would need to see the loan agreement, payment history and relevant correspondence concerning the Credit Union's error (you should have something in writing from them).
You are welcomed to contact me or send documents to Lakeshore Law Center www.lakeshorelaw.org
Answered on Mar 30th, 2013 at 3:39 PM
www.lakeshorelaw.org