Didn't reaffirm auto loan - voluntary surrender letter????

[drowningNdebt]

I was discharged back in Jan 11/2010 and the lender never came to get the car. So I made a call to the lender and they said I need to sign and fax back a voluntary surrender letter in order for them to come and get it. The lender is USAA. Is this standard protocall? Letter indicates name, address, year/make of car, reason for return (circled BK "was discharged in ch 7" ) and if i tried to sell or refinance the car (i put no cause I'm unemplyed) My question is, is this normal? I thought the lender would just come get the car after discharge? Or perhaps they thought I was doing a ride through with the loan? I'm just about 60 days late now.

[LSUTiger32]

May be normal, but why do it? I wouldn't sign anything from a company that you are bankrupting something with. They have what they need from the bankruptcy and the fact that they aren't getting payments to pick it up. Let them come get it.

[drowningNdebt]

it indicates BK on the form.

[justbroke]

I wouldn't sign it, but you can fill it out. It is absolutely their responsibility to repossess the vehicle, if that's what they choose to do.

The reason I say don't sign it, is because another poster had one of those "voluntary" repossession forms, but it indicated that they'd be responsible for any deficiency caused by the sale of the vehicle! So, I would say that the best you'll do is leave it at a USAA branch, or they can come and get it when they are ready.

[drowningNdebt]

Justbroke, it indicates this in small print on bottom of form:

The account will be charged off and reported as bad debt to all major creit bureaus. The vehicle will go to auction for re-sale and a deficiency balance will become your responsibility.

When I saw that I questioned myself signing this form eventhough the car was included in BK.

[LSUTiger32]

Justbroke, it indicates this in small print on bottom of form:

The account will be charged off and reported as bad debt to all major creit bureaus. The vehicle will go to auction for re-sale and a deficiency balance will become your responsibility.

When I saw that I questioned myself signing this form eventhough the car was included in BK.

Exactly why you sign nothing with anyone that you are in an adversarial state with. They were trying to jack you although I am not sure that would fly with the BK court once the debt has already been included. Still, throw it in the garbage can and tell them the car is theirs whenever they are ready to come and get it.

[drowningNdebt]

To be honest I think whats going on here is a lack of communication between departments of the institution. I spoke to someone in the recovery department and there the one who sent me this form. They may not have known I filed and was discharged from BK. Then my lawyer called and said she got the ball rolling. I emailed her a copy of the letter and am awaiting a response. Worse comes to worse I will let the car sit and forget about it. Not my problem but I don't think I'm going to sign this form. It could also have an adverse effect on messing my credit up. The car wasn't repoed but included in my BK discharge. Who knows???

[ItsJustMe]

Oh that's SNEAKY! Glad you caught that!

[justbroke]

The voluntary repossession form used by these lenders appears to be "boiler plate" or so-called "form" letters. They are intended for people who normally are, indeed, voluntarily surrendering their cars. What gets me, is that the poster's form letter had a check box for "Bankruptcy", yet USAA still felt the need to include a "collection" statement at the bottom, in small print.

That is, actually, a violation of the Automatic Stay. Is it worth pursuing, probably not. I'd have more fun with just sending it back without singing, and then seeing if they demand a signature. THEN you could have some fun with pursuing the automatic stay violation.

[drowningNdebt]

I think I'm going to shred the form. No way am I filing it out and sending it to them. I concluded, when they want the car they will come fetch it. For now, it's not my problem and I'm taking insurance off of it. I have documentation proving the ball is in their court by numerous attempts to have the collect and my attorney as well.

[justbroke]

What did your attorney finally suggest?

[drowningNdebt]

i haven't heard back from my attorney yet. however, i'm not signing this form with the small print in writing.

[drowningNdebt]

Ok so my attorney responded or shall I say the paralegal. She indicated everything looks fine and it's just part of USAA process. However, I'm still hesitant to send the letter in.

[NoMoreCards]

Honda Financial had the same letter when I turned in my car. I blacked out the collection part, wrote in that it was being turned in due to BK and gave it to them. My lawyer said that would be fine, and that is what I did.

I haven't had any problems with it. But other posters are correct here, tread very lightly with this and verify with your attorney before you sign anything.

[justbroke]

That's something I didn't think of. Cross out the offending part(s) and initial. Make sure you keep a copy for yourself! Otherwise, personally, I might ignore it, but that's me.