Hello Larry
What the used car dealership told you is absolutely correct.
In B.C., when a personal use vehicle is sold under a conditional sales contract to an individual, it is registered in the Personal Property Security Registry. The Personal Property Security Act provides that if a debtor defaults on a conditional sales contract, that the creditor can either sue the debtor for the unpaid balance owing or seize the collateral ( i.e. the vehicle ), but NOT both. This is known as the "seize or sue" rule.
In the event that the creditor decides to seize the vehicle and sell it by any means and there is a shortfall between the proceeds received and the balance owing on the vehicle, the creditor cannot sue the debtor for any deficiency. Conversely, if the vehicle is sold and the creditor realizes a surplus, there is no provision in the Act to return this surplus to the debtor.
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Educating one Consumer at a time