Buy-Here-Pay-Here Repossession

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READER QUESTION

I bought a car from a buy-here-pay-here location. I had it repossessed after being late four days with no notice. Is that legal

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Bills.com Resident Expert
Dec 12, 2011
BILL'S ANSWER

A creditor has legal authority to seize your vehicle as soon as you default on your loan or lease. State laws differ, so you must read your contract to find out what constitutes a "default." Generally speaking, failing to make a payment on time or to meet your other contractual responsibilities are considered defaults. Creditors are allowed on your property to seize your car without letting you know in advance in most states.

Generally speaking, the law does not require a creditor to give a debtor a grace period if the debtor is late in making a payment. However, smart creditors who want to develop a positive reputation and earn the loyalty of their customers will give their customers notice and some grace if the customer is late in a payment.

On the other hand, if a customer is late making their month-two payment, that does not bode well for the future.

Whether the creditor violated a state law by not giving you notice before repossessing the car is not a question I can answer because you did not include your state of residence in your message. Consult with an attorney in your state who has experience in consumer law to learn if the creditor violated any state laws when repossessing the vehicle. Ask the attorney if you have the right to "reinstate" the loan if you make the payment due. Reinstatement is restoring a past-due loan to a current status.

You mentioned you "invested" $2,000 in the vehicle. If you spent that money on accessories such as fancy rims and low aspect ratio tires you may be entitled to those items or to receive reimbursement for their value. Again, this is a question for an attorney to answer.

I hope this information helps you Find. Learn & Save.

Best,

Bill

www.bills.com/

Comments (4)


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Cherry P.
Shorter, AL  |  August 16, 2011
i recently had my car repo'd by the lien holder. The thing is I wasn't behind on my payment. So, I asked the son of the lien holder why were they taking my car. He said that it's because you have a payment due Tomorrow and you are behind on your payment. But, I went and found all the receipts from March of 2011 up to July of 2011 and the next payment was due in August. That's when they came and got my car. But, when they came his wife pulled a stun gun out at me a clicked it in my face 3 time. Were they supposed to have had a weapon when they came up in my gated fence? My husband and i didn't have a weapon at all we were unarmed. The next day I called the lien holder and asked, Why did you repo my car?" Her answer was because we couldn't get in touch with you and you are two months behind and you don't have any insurance. Remember, she said that I was late for the month of April and May but I found those two receipts and I also have June and July's receipts. The only amount I owe on that truck was $1,186.00. It would have been mine. I was so proud to have had paid my first truck off; it would have been a blessing for me and my kids.
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Bills.com
August 16, 2011
You should call the police and your state's Attorney General's Consumer Affairs office. Your truck should not have been repossessed, when you have proof of making your payments. Take the right steps to protect yourself!
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Robert B.
Jacksonville, AL  |  September 20, 2011
Most buy here pay here lots require you to carry full coverage insurance, if your insurance gets canceled for non payment your car can be repo'ed for not carrying required ins.
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Buy Here Pay Here Schenectady
November 23, 2010
Fantastic blog I genuinely love how it is easy on my eyes as well as the facts are well written. I am wondering how I can be notified whenever a new post has been made. I have subscribed to your rss feed which must do the trick! Have a nice day!
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