Average auto loan debt: $23,792. Auto loans are secured debt — the lender can repossess. However, deficiency balances after repossession can be disputed, especially if the sale wasn't commercially reasonable.
Common Second Round Sub Violations
Collecting debts they cannot substantiate
Failing to cease collection after dispute
Inaccurate credit bureau reporting
Auto Loan Debt Dispute Strategies
1
Challenge deficiency balance after repossession
2
Verify the sale was commercially reasonable (UCC requirement)
3
Dispute if proper repossession notice wasn't given
4
Check for state-specific redemption rights
5
Validate any collection attempts under FDCPA
Tips Against Second Round Sub
Second Round buys deeply discounted debt — negotiate aggressively
Demand full validation including original creditor statements