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georgekarn · Apr 30, 2014, 03:03 PM

I had a car that was worth about 1000.00 and it was stolen from me. I am on ssdi benefits. The car dealer has me being sued. Can they sue me?

smoothy · Apr 30, 2014, 03:07 PM

Why didn't you have insurance on it... every dealer and place that loans funds I know of REQUIRES you to have full coverage insurance for the entire period you owe on the loan for this very reason.

So yes they can sue you...then can win a judement against you if you EVER come across any money they can garnish in the future.
Even if your current income might be judement proof. It doesn't mean you will never win money....be gifted some or inherit some, or earn some, and they can get it from your estate after you die if there is any.

Alty · Apr 30, 2014, 03:15 PM

Originally Posted by georgekarn

I bought a car and had it was stolen I am on ssdi benafits can they sue me even I have a police report

Insurance would cover this loss. Just because the car was stolen doesn't mean the lender doesn't deserve to get their money back. Your insurance should cover their loss, and insurance is required when there's a lean on the vehicle, so I'm sure you have insurance. Talk to your insurance company.

georgekarn · Apr 30, 2014, 03:24 PM

Originally Posted by Alty

Insurance would cover this loss. Just because the car was stolen doesn't mean the lender doesn't deserve to get their money back. Your insurance should cover their loss, and insurance is required when there's a lean on the vehicle, so I'm sure you have insurance. Talk to your insurance company.

They don't requird it and I paid for a car for 2500.00 I almost had it paid off {580.00 they want to sue me can they?

Can I be sued if I am on ssdi benafits

smoothy · Apr 30, 2014, 03:28 PM

Certainly they can.. You owe them. There were very foolish to NOT require insurance. Good luck finding anyone to sell you another on credit anywhere even at any crazy high interest rate.

THey can even win a judgement against you, and your estate...as I said previously.

Alty · Apr 30, 2014, 03:46 PM

Originally Posted by georgekarn

Can I be sued if I am on ssdi benafits

Yes, you can be sued.

odinn7 · Apr 30, 2014, 07:43 PM

Originally Posted by smoothy

Why didn't you have insurance on it... every dealer and place that loans funds I know of REQUIRES you to have full coverage insurance for the entire period you owe on the loan for this very reason.

Not entirely true....

Some buy-here-pay-here dealers do not require full coverage and I know of at least one sub-prime lender that does not require full coverage on cars that are $3,500 and under.

However...why you would want to take a chance and why you would wonder if you could be sued....wow. Yes, you can be sued. As was already pointed out, it is not the dealers/lenders fault that the car was stolen and didn't have full coverage insurance. You agreed to pay for the car in whatever contract you signed so whether or not you have the car, you are legally obligated to fulfill your end of the agreement. Why should the dealer/lender be out of their money just because you didn't want insurance on your car?

smoothy · Apr 30, 2014, 07:51 PM

Hmmmmm, those outfits are taking serious risks doing that... on top of lending to the most risky of people... those with no credit or bad credit. Didn't know any took those kinds of risks.

I had a relaitive that sold used cars... easy weekly payments... dealer financing so it could be reposessed in a month rather than after four if they stopped paying under state law. Always to people that nobody else would lend to... Even he required full coverage.

odinn7 · Apr 30, 2014, 08:03 PM

It all comes down to desperation. Dealers that do the BHPH method that don't require full coverage are usually selling crap that is paid for on the down payment. Anything they get in payments is gravy. They don't require full coverage because many people balk at having to pay the rates to get insurance on a cheap/junk car. The finance company I know of...well, they make so much profit off of their regular deals, they don't worry all that much about the rest. They have a 30% figured in write off for all deals. What that means is that they automatically assume that 3 out of 10 people will not pay for their car anyway. At $3,500, a loss is hardly anything to them when you consider that the chances are they have gotten paid some anyway...and then, like in this case, they sue for the rest if it seems worthwhile. Smoothy, I will PM you the name of the company if you want but I don't want to post their name out here as I don't want to advertise for them.

smoothy · May 1, 2014, 04:39 AM

No need... I'm sure there are more than a few of them. If there wasn't money to be made somehow... they wouldn't doing it. I guess they are just more shrewd than the average place would be. Nobodies in it for charity. I was shocked they would lend to the most risky customers that exist without the insurance...but they are just pricing that risk into the loan in another way.

ScottGem · May 1, 2014, 05:32 AM

Nothing prevents you from being sued. The question is two fold, whether they can win the suit and whether they can collect. From what you say it is likely they can win, but not so likely they can collect.

talaniman · May 1, 2014, 06:13 AM

My understanding is only the Feds can garnish Federal benefits, so they may win the suit, and even freeze your bank accounts, forcing you to arrange to pay, or lose what's in the account. The simpler solution is see if they take payments you can live with, because its not their fault you defaulted on the loan, nor had the uninsured car stolen. Not relevant to your promise to pay.

Bottom line is can they sue, heck yes they can, and will. Your source of income is irrelevant too because once its deposited it's an asset, not a benefit.