Defining What Repossession Is
Repossession is the legal act of a lender reclaiming property that a borrower has failed to pay as agreed upon in a loan contract. Most commonly, repossession occurs when a borrower fails to submit payments for an auto loan, but this legal act can occur for other types of items such as appliances, tools, furniture, and more. Borrowers usually struggle with repossession as the recovered item is often worth less than when it was taken, despite the fact that the borrower still owes the remaining loan amount.
How to Find Out Who Has Your Vehicle
Gathering information about a repossession can be difficult, as companies dealing with the repossession of automobiles are not required to report the dates, locations, and amount of a repossession. However, knowing who to contact is the first step in finding out who repossessed your vehicle.
The first step is to locate the original loan contract or loan papers. This document should include contact information for a loan representative who can answer further questions. If the original loan contract cannot be located or is unavailable, then contact the loan provider and ask for the account numbers associated with the loan in order to pull up the agreement.
Once you have the contact information for the loan representative, contact them and ask who was used to repossess your vehicle. This can be a difficult conversation as the representative may not initially want to provide the information. Nevertheless, explain in detail why you need the information and ask if there is anyway you can obtain it.
What to Do After Finding Out Who Has Your Vehicle
The next step is to contact the company that repossessed your vehicle. Some repossession companies will not tell any details at this point but the company will typically refer you to the repossessor of your vehicle. Contact the repossessor and explain what happened. There is a chance that the repossessor will be willing to work with you in order to return your vehicle.
You should also check with the state and federal government to find out if there are any restrictions against repossessing a vehicle in your state or city. In some states, repossession is only allowed after certain documents have been signed and notarized, while other states have no such requirements.
Repossessor Regulations to Be Aware Of
When dealing with repossessors, keep in mind that they are restricted from entering places of business, your home, or any other private property without a consent form or court order. The repossessor is also not allowed to damage your property or threaten you with physical harm.
It is important to note that the repossessor is also not allowed to resell your vehicle without either your written consent or a court order. If a repossessor attempts to do so, you may be able to get your vehicle back by filing a lawsuit against the company.
Strong-Armed Repossession Tactics
Some lenders may use strong-armed repossession tactics, such as using multiple agents to repossess a vehicle or suing to collect a portion of the debt that is not due. Furthermore, a lender cannot simply take the vehicle back without warning, as they are required to provide notice of the repossession as well as follow orderly repossession practices.
If a repossessor has used strong-armed tactics or has otherwise violated your rights, you should speak with an attorney. The attorney can help you explore all of your options, including potentially suing the repossessing company for violating state and federal repossession laws.
Legal Options for Recovering a Repossessed Vehicle
If a repossession has already occurred, you may still have legal options for getting your vehicle back. Depending on the state, you may be able to file an immediate motion to recover the vehicle. Additionally, some states such as California allow a borrower to reclaim the vehicle within 10 days of the repossession through a process known as redemption.
Lastly, if you can prove your debt has been paid or discharged in bankruptcy, then you may be able to get the vehicle back without having to pay additional fees. Start by speaking with an attorney who understands the laws in your state and can help you determine the best course of action.
When to Seek Professional Help
Repossessing a vehicle can be a long, drawn-out process, and it is important to take the time to educate yourself on the legal aspects of repossession. Furthermore, make sure to find a qualified attorney who can work with you and help protect your rights. Professional help is especially important when a lender has used strong-armed tactics or is otherwise in violation of state or federal law.
How to Avoid Repossession
The best way to avoid repossession is to keep up with the payments on any outstanding loans. If you are struggling to make monthly payments, contact your lender and explain the situation. Many lenders are willing to negotiate with borrowers in order to come up with a payment plan that works for both parties. If that is not an option, then speak with a debt relief attorney to explore other potential solutions.
It is also wise to keep any documents related to your loan or vehicle in a safe place, as they will be invaluable if you need to dispute the repossession or seek legal action.
How to Negotiate Reinstatement After Repossession
For many borrowers, the repossessed vehicle will be seized and held by the loan provider as collateral until the balance is paid in full. However, there are situations in which the lender may be willing to reinstate the loan.
If the repossessed vehicle is worth more than the remaining balance, then the lender may be willing to negotiate a reinstatement of the loan. To do this, start by contacting the lender and explaining the situation. It is also important to have your documents and records in order, as this puts you in a much stronger position during the negotiation process.
The Final Word on Repossession
Repossession can be a stressful and overwhelming process, but it is important to stay informed and know your rights throughout the entire process. Make sure to read the original loan agreement thoroughly, reach out to experts, and keep all of your paperwork in order. Furthermore, take the time to evaluate all of your options, as this can help ensure that you find the best possible outcome.
