Mercedes acting in bad faith

My agility contract with Mercedes recently came to an end. I did not qualify for refinancing with MBF or any of the financing houses. Throughout the process of trying to get my vehicle refinanced I kept in touch with Mercedes and informed them of everything that was happening. Today I got a call from an attorney telling me that Mercedes has handed my account over. I'm not sure why as I was not even told this is what could happen. At the end of agility contract, as far as I know, you either go for refinancing or take the car back. The only option Mercedes discussed with me was only the refinancing and then when that was not working out they then just suddenly jumped to handing my account over to attorneys.