Consumer complaint received 2018-10-05
Company: DRIVE NOW ACCEPTANCE LLC
State: IL
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Problems at the end of the loan or lease
Sub-issue: Problem while selling or giving up the vehicle

Complaint:
XXXX XXXX XXXX XXXX  repossessed my vehicle on XXXX XXXX. Drive Now Acceptance did not send proper written notice about its intended public resale, according to its letter to me dated on XX/XX/XXXX ( please review attached copy of letter ). The notice did not include the required information, as it did not include the time, date and place of the sale, which I understand violated 810 ILCS 5/9-613, and 5/9-614, as it did not meet technical legal requirements in connection with the resale of the XXXX XXXX XXXX. XXXX XXXX XXXX XXXX has reported a deficiency of {$3800.00} on my XXXX   Credit Report without providing me with any proof of sale information since their letter dated XX/XX/XXXX. 

The purpose of the notice was supposed to give me a chance to redeem the vehicle before resale and attend the Public Auction. XXXX XXXX XXXX XXXX did not give me a chance to observe every aspect of the sale to make sure the vehicle was sold for a fair price. 


The letter did not contain pertinent information about the notice. There was no date or sale location ; the notice was useless. 

XXXX XXXX XXXX XXXX did not meet commercially reasonable resale requirements The law requires that all aspects of the resale must be commercially reasonable. This means that the manner, method, time, place, and terms of the resale must all be reasonable by commonly accepted commercial practices. XXXX XXXX XXXX XXXX did not use every reasonable means or their best efforts to obtain the full value of the XXXX XXXX XXXX, since XXXX told me that they auctioned the vehicle it to themselves for {$1000.00}. XXXX told me by phone on XX/XX/XXXX that they didnt have to provide me with any information about proof of sale. 

The creditor is not allowed to bid upon or purchase the property. More than one bid must be solicited. A non-arms-length sale to a related entity or the originating dealer may not comply. XXXX XXXX XXXX is the President is XXXX XXXX XXXX XXXX and is also the Registered Agent on file for XXXX XXXX XXXX XXXX XXXX XXXX XXXX is also on of the principals on record ( XXXX XXXX is the other principal ). 

Public Sales Here, the creditor is allowed to bid upon and purchase the property. More than one bid must be obtained. It requires appropriate advertising or other publicity to attract bidders. The secured property must be available for inspection by the public before and during the sale. The sale must occur at a convenient location and be accessible to all members of the community. It should not take place in bad weather. If the notice informs the debtor that the sale is to be public, it must be a public sale. 

Drive Now Acceptance Did Not Meet Other Requirements : - The sale must be made to a purchaser who bids in good faith. There can be no collusion or alliances between the creditor and the purchaser. 

- The sale should not be held too quickly after the repossession, but it should not be delayed too long ( 60 days may be too long ). If the sale is too late, the debtor can claim that the creditor decided to keep the property, and the debtor should not be liable for a deficiency - If the creditor , Drive Now Acceptance, has access to a retail outlet, which is XXXX XXXX XXXX ( three locations in Illinois ) then the repossessed vehicle should be sold at a retail outlet to ensure a commercially reasonable sale. XXXX XXXX XXXX XXXX v. XXXX, XXXX XXXX XXXX. XXXX XXXX, ( XXXX XXXX. XXXX ). 

On the evening ( dusk ) of XX/XX/XXXX, I was with a friend running errands and happened to drive by XXXX XXXX XXXX in XXXX and noticed a red minivan on the lot - it was right in front facing XXXX XXXX. I asked my friend to turn around because I suspected it was my XXXX red XXXX XXXX. 

On XX/XX/XXXX, I saw the XXXX Red XXXX XXXX listed as a New Arrival on Superior Car Credits website. The VIN in the listing matched the one they repossessed from me. ( See attached screenshots ). The stock number of the Buyers Guide also matched the stock number in my contract documents. 

XXXX XXXX, a salesperson at XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX, IL stated via phone call on XX/XX/XXXX that the prices of the vehicles on their lot are between {$5900.00} and {$12000.00}. During the conversation, she also confirmed to me that they had the XXXX XXXX XXXX in their inventory but had sold the vehicle between XX/XX/XXXX and XX/XX/XXXX. ( In its letter to me, XXXXDrive Now stated that the sales price of my vehicle would be applied to my outstanding loan amount, and if the sales price exceeded my outstanding loan amount, the excess would be gifted to me. Nothing like this has occurred. ) XXXX would not provide me with any details of the sale and connected me to XXXX extension. XXXX is the General Manager at XXXX XXXX XXXX in  XXXX. XXXX also refused to provide me with details of the sale and told me to call Drive Now Acceptance to get the information from someone there. I immediately called Drive Now Acceptance in XXXX XXXX and spoke to XXXX. XXXX told me that they auctioned the vehicle to themselves for {$1000.00}. XXXX told me that they didnt have to provide me with any information about proof of sale. 
In addition, this alleged dealership charged me ( beginning XX/XX/XXXX ) {$5.00} per payment other than cash without disclosing such surcharge to me. So, I was charged an extra {$10.00} per month on top of my regular bi-weekly payment of {$180.00}. This sleight of hand should have been disclosed in writing. 

This illegally operating creditor did not resell the XXXX XXXX XXXX according to law, even though it has reported a deficiency on my credit report ( see attachments ).

Company response to consumer: Closed with explanation