Clients of this Dallas bankruptcy attorney were not making payments on a vehicle they intended to surrender. Wells Fargo took the vehicle before the I filed the petition and them filed a motion for relief. WF then sold the vehicle at an auction. WF then sent my client a form letter informing them of their responsibility for the deficiency of $14,562.84. On page 2 of the letter, the following language is found in all capital letters:
IF YOU HAVE RECEIVED DISCHARGE OF THIS DEBT IN BANKRUPTCY OR ARE CURRENTLY IN A BANKRUPTCY CASE, THE PRECEEDING NOTICE IS NOT INTENDED AS AN ATTEMPT TO COLLECT A DEBT. THIS COMPANY HAS A SECURITY INTEREST IN THE ABOVE DESCRIBED PROPERTY THAT CONTINUES EVE AFTER THE BANKRUPTCY DISCHARGE. THIS NOTICE IS GIVEN ONLY FOR THE PURPOSE OF COMPLYING WITH THE REQUIREMENTS OF STATELAW REGARDING REPOSSESSION OF COLLATERAL, AND SHOULD BE CONSTRUED AS DEMAND FOR MONEY.”
Despite this disclosure language, my clients freaked out. UCC requires a notice about redemption and another notice about a sale before the creditor can collect on a deficiency. We do not sue on these notices when they contain the qualifying language. Around here unless you can prove actual damages, a 362 violation will not lie. FDCPA does not apply because the original creditor is doing it.
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