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What action can a lender take after car is repossessed against the borrower?

1. File a lawsuit for deficiency balance: If the amount owed on the car loan exceeds the amount of money made from selling the repossessed car at auction, the lender may sue the borrower for the difference, known as the deficiency balance.

2. Garnish wages or bank account: The lender may obtain a garnishment order from a court to seize the borrower's wages or money in their bank account to cover the debt.

3. Seek a judgment: The lender can seek a money judgment against the borrower for the amount owed. If the borrower fails to pay the judgment, the Court can take several actions to enforce the judgment.

4. Collection activity: The lender may hire a collection agency to pursue the debt on the borrower's behalf. Collection agencies have legal rights and can use various tactics to collect debts, such as calling persistently and sending letters.

5. Damage to credit score: Repossession severely hurts the borrower's credit score, making it more challenging and costly to obtain loans, rent an apartment, or even obtain employment in the future.

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