C Sean Watts |
01-20-2010 06:08 PM |
Quote:
Originally Posted by MTI
(Post 2387060)
The District is being sued by the lienholder of a Mercedes-Benz that was impounded for unpaid parking tickets and then sold at auction for less than half its value, without any warning to creditors.
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Having been a car salesman, I or any other car salesman, could tell the city of DC that is NOT legal to do in ANY way shape or form. 'Book*' value & auction price do not even enter the equation in a case like this. Loan balance (and/or any liens) rule the day. The creditor(s) are due what they are due.
Case in point - any US jurisdiction - creditors repossess a car and it is damaged to an extent of 'less than half its value.**' It is later sold at auction for the lesser amount. The creditor then has the legal right to collect the difference from the debtor. Most of the time it isn't easy to do but judgments are handed down every day in cases like this.
* - Car value books are only a guideline reference, not at all a hard and fast rule
** - "VALUE" of a car is whatever anyone will pay for it, again not a hard and fast rule. BUT, when legal actions are in play (purchase contract, lien, impounding and auction - but especially the lien) contractual obligations must be met. If the city sold this car WITHOUT satisfying the lien, they wrong and their legal dept. knows it.
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