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.
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
Relevant Laws
UCC Article 9 (secured transactions)
State repossession laws
FDCPA for deficiency collections
State UDAP
Expert Tips
Lenders must sell repossessed vehicles at commercially reasonable price
Many states require advance notice before repossession
Deficiency balance collectors must validate under FDCPA