Ford Motor Credit Co. v. Russell

519 N.W.2d 460 (1994)

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Nature of the Case

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Facts

Monticello Ford (P) advertised a 1988 Ford Escort Pony for a sale price of $7,826. The publication advertised monthly payments of $159.29, based on a 60-month loan at 11% A.P.R. Russell (D) sought to purchase a 1988 Escort at the advertised sales price. Monticello contacted three finance companies in an attempt to obtain 11% financing for D. Two companies refused to extend credit due to D's limited credit history. Ford Motor Credit Company (P) offered to finance the purchase at a 13.75% A.P.R. under a special retail plan for persons with limited or poor credit. Ford Credit (P) also required D to provide a cosigner on the loan. With the optional credit disability insurance and an extended service contract, the total amount financed was $8,275.60, to be paid in 60 monthly installments of $192.63, based upon an A.P.R. of 13.75%. D's father co-signed the loan. Monticello Ford (P) assigned to Ford Credit (P) its rights under the contract. The contract provided that, upon default, Ford Credit could accelerate the balance due and repossess the vehicle. D canceled her credit life insurance, as well as the extended service contract. The unused premiums were applied to the balance of her loan, reducing her monthly payments as a result. D defaulted on numerous payments. D repossessed the automobile on February 13, 1991, and mailed Ds a notice of repossession and right to redeem and a notice of private sale that same day. D sold the automobile for $2,200 to a used car dealer at the Minneapolis Auto Auction. P brought an action for a deficiency judgment and Ds counterclaimed alleging breach of contract and false representation. The district court granted summary judgment P, and Ds appealed.