Kevin Scott purchased a new Ford van on credit from
Kevin Scott purchased a new Ford van on credit from Koons Ford of Baltimore, Inc. He made a down payment of $3,406 and agreed to make 60 monthly payments of $403.93 to pay off the balance. The contract was assigned by Koons Ford to Ford Motor Credit Company (FMCC). Scott's van was subsequently wrecked, and the cost of repair exceeded the value of the van. FMCC was paid the insurance proceeds, but Scott did not continue to make the installment payments. The van was repossessed and sold. FMCC notified Scott that he was responsible for a difference of $6,452.56. Scott never paid the balance of the payments, and four years later FMCC brought an action to reclaim the balance. Did FMCC, as the assignee of Koons Ford's security interest in the van, have the right to receive the monthly payments provided for in the agreement between Scott and Koons Ford? How do you think the court decided?
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