Repossession
Has your vehicle been repossessed due to car loan default? Are you fighting your car’s repossession? There are many options that you may not be aware of. Our Miami practice is here to help!
When you buy a car, truck, or other vehicle on credit, you should be aware that, until you have made the last payment, your creditor retains important rights in the vehicle. These rights are established by the contract you signed and by the law of your state. Your failure to make payments on the vehicle in a timely manner carries serious penalties. Your creditor will then have the right to “repossess” the vehicle — take back your car without going to court or without advance warning you.
Normally, your creditor has legal authority to seize your vehicle as soon as you “default” on your car loan. What constitutes default will be stated in your contract, but failure to make a payment on time would certainly be an example. However, if your creditor has agreed to accept your late payments or to change your payment date, the terms of your original contract may no longer apply. Such a change in your credit contract may be made orally, in writing, or, sometimes, simply by your creditor’s repeated acceptance of late payments without complaint. Once you are in default, the laws of most states permit the creditor to repossess your car at any hour of the day or night, without prior notice, and to come onto your property to do so.
However, your creditor’s right to repossess your car or truck is subject to some restrictions. When seizing the vehicle, your creditor may not commit a “breach of the peace” by, for example, using physical force or threats of force. Taking your car over your protest or removing it from a closed garage without your permission also may constitute a breach of the peace, depending on the law in your state. Should there be a breach of the peace in seizing your car, your creditor may be required to pay a penalty or, if any harm is done to you or your property, to compensate you. Also, because of a breach of peace, your creditor may lose the right to collect a “deficiency judgment.” A deficiency judgment is the difference between what you owe on your loan and what your creditor receives when reselling your vehicle.
In addition, state law places limits on how your creditor may repossess the vehicle and resell it to reduce or eliminate your debt.
If any of these rules are violated, your creditor may lose other rights against you, or even be required to pay you damages. One of our experienced car repossession lawyers can consult you on whether any violations took place during your specific repossesion. Call our Miami office today for a free consultation!
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