Re: Does REA mean recent activity??
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Posted by Linda (65.120.51.45) on May 09, 2002 at 02:44:55:
In Reply to: Re: Does REA mean recent activity?? posted by Sammy on May 08, 2002 at 14:11:17:
This debt is what is called a "deficiency balance" and it's not the same as the installment loan you sign when you bought the car. It falls under some totally different laws, and every state is different. You need to familiarize yourself with your state's alws about repossessions and deficiency balances. Go here, and click on the link for "automobiles and repossession" then on the next page, click on "repossession" in the little red box in the top right hand corner of the page. That will give you a summary of the Iowa law about this. http://www.lawdog.com/states/ia/st1.htm ******************
Accounting and Deficiency: If the security interest secures debt, secured party must account to debtor for any surplus, and, unless otherwise agreed, the debtor is liable for any deficiency. See section 554.9504 of the Code of Iowa, from the Iowa General Assembly.
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Restrictions on Deficiency: Under Section 537.5103 which covers certain consumer credit sales of goods or services and consumer loans, consumer is not liable for a deficiency unless the creditor has disposed of repossessed or surrendered goods in good faith and in a commercially reasonable manner. The seller's duty to dispose of the collateral is governed by the UCC provisions on disposition of collateral in sections 554.9501 to 554.9507.
****************8 So, deficiency balances are legitimate debts, but there are a lot of thing the creditor has to have done (and probably didn't), so it isn't too hard to fight this kind of debt, once you learn what to dispute. Linda
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