Auto Repossessions… The Lien Holder Will Take The Car…
Auto repossession is a powerful tool that the lien holder will enforce if necessary. It can also
severly damage your credit report.
Imagine getting up one morning and you are feeling pretty darn good. And as you get ready
for work in a mad dash, you race out the door but have to stop in your tracks and are
shocked when your car is not in your driveway. You would probably freak out and call the
police to report your car stolen.
You would probably be stunned when the operator explained that your car had in fact NOT
been stolen, but had been reported as auto repossessed by the bank.
severly damage your credit report.
Imagine getting up one morning and you are feeling pretty darn good. And as you get ready
for work in a mad dash, you race out the door but have to stop in your tracks and are
shocked when your car is not in your driveway. You would probably freak out and call the
police to report your car stolen.
You would probably be stunned when the operator explained that your car had in fact NOT
been stolen, but had been reported as auto repossessed by the bank.
You might feel angry. You may even
yell at the operator explaining that
you had arranged with the bank to
send in the payment by the end of
the week.
But the operator simply said there
was nothing she could do.
You then call the bank to find out why
they sent the repo man to take your
car. The bank officer explained that
your payment had not been received
and they have the authority, as per
the contract, to repossess the vehicle
when you are late with payment.
You go round and round with the
bank officer but get nowhere. It cost
yell at the operator explaining that
you had arranged with the bank to
send in the payment by the end of
the week.
But the operator simply said there
was nothing she could do.
You then call the bank to find out why
they sent the repo man to take your
car. The bank officer explained that
your payment had not been received
and they have the authority, as per
the contract, to repossess the vehicle
when you are late with payment.
You go round and round with the
bank officer but get nowhere. It cost
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you the amount of the past due portion of the car payment, an additional car payment and
towing and storage fees to get your car back. To make matters worse, your credit report get
dinged causing damage to your credit score.
Was the bank unethical in auto repossessing your car after a verbal agreement had been
reached over the phone?
Maybe.
Was it illegal?
Maybe.
The answer to these two questions depends on your ability to prove the terms of the verbal
agreement.
The bank holds the title to a vehicle that they finance and they have the right to recover
their property if payments are not being received as described in the credit agreement.
It is as simple as this. If you cannot prove your side of the story ‘in writing’ then as far as
the bank is concerned, and more than likely any court, it did not happen.
My advice is this, if you do fall behind on your auto loan and your bank or finance company
authorizes an extension, GET IT IN WRITING.
Do not be fooled by a nice and friendly customer service representative who has been very
helpful in reaching an agreement with you. You can't afford the damage it can do to your
credit.
The representative may have been sincere in her efforts, but there is still a credit agreement
in place that upper management is obligated to enforce.
towing and storage fees to get your car back. To make matters worse, your credit report get
dinged causing damage to your credit score.
Was the bank unethical in auto repossessing your car after a verbal agreement had been
reached over the phone?
Maybe.
Was it illegal?
Maybe.
The answer to these two questions depends on your ability to prove the terms of the verbal
agreement.
The bank holds the title to a vehicle that they finance and they have the right to recover
their property if payments are not being received as described in the credit agreement.
It is as simple as this. If you cannot prove your side of the story ‘in writing’ then as far as
the bank is concerned, and more than likely any court, it did not happen.
My advice is this, if you do fall behind on your auto loan and your bank or finance company
authorizes an extension, GET IT IN WRITING.
Do not be fooled by a nice and friendly customer service representative who has been very
helpful in reaching an agreement with you. You can't afford the damage it can do to your
credit.
The representative may have been sincere in her efforts, but there is still a credit agreement
in place that upper management is obligated to enforce.