WINFIELD -- A company which purchases retail installment contracts from a car dealer is suing the dealer after a couple buying a car filed bankruptcy.
Santander Consumer USA of Kentucky filed a lawsuit Feb. 3 in the Putnam Circuit Court against T.P. Chevrolet Inc., doing business as Turnpike Chevrolet of Nitro, citing default of contract.
The lawsuit states the two companies entered into a non-recourse dealer retail agreement where Santander agreed to purchase certain motor vehicle retail installment contracts from Turnpike Chevrolet.
In turn, Turnpike warranted it would file and record all documents that would perfect the first priority security interest of Santander in the purchased vehicle within 20 days of purchase, according to the complaint.
Hays Tackett Jr. and Jennifer Marie Tackett of Lewis County, Ky., bought a 2010 Toyota Corolla from Turnpike on Nov. 27, 2012, the complaint states. They filed a Chapter 13 bankruptcy petition and Santander has no options on collecting on the debt for the vehicle purchase because Turnpike failed to properly perfect security interest and lien.
Santander is seeking $16,929.50, plus interest at a rate of 21.39 percent per annum from Jan. 11, 2013, until the date of judgment and then until paid in full, plus all court costs. It is represented by Christopher Dawson of Mapother & Mapother P.S.C. The case has been assigned to Circuit Judge Joseph Reeder.Putnam Circuit Court Case No. 14-C-33