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
I bought a car from a buy-here-pay-here location. I owned the car for almost two months. I just had it repossessed after being late 4 days. I received no noticed at all. Is this legal? I invested over $2,000 into the car and only had it for less than 60 days. He also repossessed my friend's car after being late only 2 days and did not want to fix his car as promised.
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.