One of the most stressful situations is having your vehicle repossessed. However, if it was wrongfully repossessed, you do not need to feel powerless. Understanding your rights and legal options is imperative in these circumstances, and you may find that you can sue to recover compensation for your damages.
What Is Considered a Wrongful Vehicle Repossession?
Wrongful repossessions can occur when a creditor unlawfully takes possession of your vehicle. They may not issue a proper notice, enter your property without permission, or use forceful tactics. They could even make a mistake and take your vehicle even if you have not missed any of your payments.
As a consumer, it is essential to understand the rights you are entitled to by the law. There are laws to protect you in the event of a repossession to ensure the process is fair. You have a right to notice from your creditor that states the reasons for repossessing your vehicle, how much you owe, and what steps you can take to prevent this process.
You also have rights for disputing the repossession. If it has been made in error, you can challenge it in court and present evidence to support your case. You can recover your property and get it back by paying off the debt or signing a new agreement.
Most importantly, you have the right to be treated fairly and with respect. Sometimes, people make mistakes and make a payment a few days late. Even if you haven’t been able to make payments for any reason, lenders are forbidden from harassing you, using intimidation, or exerting physical force in these situations.
Know Your Rights as a Consumer When It Comes to Wrongful Repossessions
It is easy to feel lost and unsure of how to handle a wrongful repossession. The good news is that you have consumer rights and can exercise them in this process.
These are the most important consumer rights you should be aware of when dealing with a wrongful repossession case:
Notice of Repossession
In many states, you must be issued a notice of repossession from the lender. The notice should have information about why they are calling for the repossession of your vehicle. It should also list the actions you can take to prevent it from happening.
Right to Cure
There may additionally be an opportunity for you to bring your defaulted loan up to date by making payments. You’d be responsible for paying late fees and other accrued charges but the right to cure gives you the chance to make things right before the drastic measure of repossession occurs.
Right to Reinstate
Another right you may have available is reinstating your loan by paying off the past due amount and accumulated fees, allowing you to keep your vehicle.
Right to Redeem
You may be able to redeem your vehicle after a repossession by paying the entire balance of your loan plus any applicable fees.
Right to Fair Debt Collection Practices
Even if you missed payments, you have the right to be treated fairly during the repossession process. Creditors and the repo agencies they use must all abide by the laws.
Right to Proper Sale
If your vehicle is being repossessed and sold by the lender, they must conduct a proper sale and follow the right procedures. This includes providing you with notice of the sale. If any surplus funds are received in this transaction after the loan balance has been paid, you have the right to receive them.
While these rights may vary by state and loan terms, you should be aware that you can pursue legal action if they are infringed. It is wise to consult with wrongful repossession lawyers who can issue proper legal guidance based on your unique case.
When you understand your rights, you can protect yourself and pursue legal action. In wrongful repossession cases, you can seek damages for your financial losses from this unpleasant event. Make sure you gather evidence to prove that your vehicle was wrongfully repossessed and that you hire an attorney to stand up for your rights.