I became thirty days late on my auto loan. The leinholder contacted me and told me that they needed payment the same day. I notified the person that I spoke with that I couldn't make the payment that night but I will do so via western union the next day. Several hours later someone calls my phone notifying me that they were outside of my apartment to pick up my vehicle. I really didn't understand that because I just made arrangements to pay my past due balance the next day. I was told that if I didn't bring out the keys to my vehicle then I would be charged for towing fees as well. My vehicle is a front wheel drive that was pulled into a parking space. The agents didn't wait for me to arrive outside of my apartment complex, they began dragging my van away (because they couldn't get it from that spot.) I arrived with the keys. The repo man then notifies me that this order was issued on the 26th. It was the 28th when they came to pick up the vehicle. When I called the leinholder to get my vehicle back, he said that because I became thirty days delinquent, I am more of a risk than I was when I first purchased the vehicle. He refused to release the vehicle without a co-signer. I notified him that I don't have a co-signer. I was later told that if I paid $3500 towards the vehicle by May 14, 2004, I could get it back. They feel that if I pay a large chunk of what I owe then I won't be much of a risk. If I pay this money, am I guaranteed to get my vehicle back. Should I pay this money back to them or should I try to get something else before they put a repossession on my credit report? What should I do?
I personally would attempt to get your vehicle back and pay the repo fees you dont want to mess with them selling your van and applyying the proceeds from the sale of your vehicle to your acct which would stillleave you with a huge defficency balance that they can later sue you on and get a judgement to attach your wages or put a lien on your home or accts. you only have a limited amount of time to retain your vehicle. I am suprises that the leinholder already repo the van they usually wait 45-60 days past due not just 30 did they give you a notice saying they would repo if it wasnt cured by a certain date ?
That really sucks! What kind of dealer is this, who repos a vehicle based on a 30-day late? Is it one of these "buy here, pay here" places? Also, it sounds as though they're attempting to change your loan agreement, saying that you're now a "greater risk". My car loan is through a bank, and they CANNOT change the loan agreement, late or not. Depending on your sales/loan contract, one other avenue to investigate would be whether or not the repo was properly (and legally) executed, according to UCC? Any comments from anyone else?
Only if you don't have that much money...my suggestion is to have a lawyer look over your contract and their arrangement.
The problem is that I won't have $3500 before May 14. The vehicle has too many miles on it for me to refinance it and I don't want to put all that I currently have into a vehicle and I don't have anything in writing to protect me and the agreement that I verbally made!
You are absolutely right. I just contacted the leinholder and now they are notifying me of extra fees to pay. They want me to sign the contract all over again plus pay three months of insurance ahead of time before I can get the vehicle back. All of this must be done by May 14, 2004. If I am able to come up with this money does that $3500 go towards the principle or is that considered like a downpayment. What to do? Help!!!!!!!!!!!
Take this advice, tmeda. With all of this new info you're giving us, something's just not right here. Sounds like these guys are taking you for a ride! What are they gonna ask for next? Payment in full? I asked earlier, is this a "buy here, pay here" dealer???
read your contract very carefully. normal banks cannot charge more than the cost of the repo and past due amount to give the vehicle back to you. your contract is legally binding and cannot be altered without both parties consent.
They can usually charge related expenses too, like the towing and the STORAGE. THAT really adds up quickly. If you can call a lawyer I'd do that. No car has too many miles to refinance. You may not be able to refinance for the full amount of the loan, but it's worth a phone call to find out the value of the vehicle and the rates available. Even with a lower FICO (not saying you do have a low one) lots of banks will still finance you since it's secured. I wouldn't mention the repo, though, and it's not likely to show up on your CR just yet. Move quickly.
Just a couple things, there are limits to mileage and financing, it is up to the bank. Also, there was a comment about the dealership. It is the bank who is repossessing the car, not the dealer (unless they carry their own contracts). Also, yes it takes both parties to re-write the contract, but when a contract is broken, as in paying late, there are repercussions. Also, yes they may ask you to pay in full. I don't see why that sounds so outrageous. It's the same with a credit card - pay late or stop making payments and they demand payment in full, not to mention raising your APR without your consent. Do you have an itemization of what the $3500 actually is? That sounds extremely high to me. Can you provide the name of the leinholder? I really think this leinholder is just shooting themselves in the foot. Why repo a car after 30 days is beyond me, in fact, I have never encountered that type of brutal, and just plain stupid behavior. Rule of thumb is 90 days. I agree that you should see if the repo was done legally and if your car was towed improperly. Sorry about the situation, it sounds like your leinholder preys upon situations like this - which is contrary to most, who do ANYTHING to keep the person in their car, because what is a bank going to do with a car, but wholesale it and take a loss?
This is why I aked if it was a "buy here, pay here" place. I've heard horror stories about these guys coming after you and taking back the car if you're even a day late. Since they do their own "financing", they don't play by the same rules that a bank would follow.
Thank you guys for all of your input. The name of the leinholder is Automotive Credit Corporation. I got the car from a dealership here in Michigan called Detroit II. I've came up with the decision that I am not even going to try to get the car back. They are putting me through so much trouble. After I posted my previous messages, i've been talking back to the leinholder. Heres the deal: They want me to pay $3500 by May 14, 2004 with the following additions, towing, repossession fees and any other fees. Check this out, I have AAA full coverage insurance. They took me through the ringer on that wanting to verify that I had full coverage insurance after they took the vehicle. They wouldn't take any documentation from me, they wanted me to have AAA fax it to them directly to verify my insurance. After they verified my insurance, they had the nerve to tell me that it's only paid up until May 14 and they want it paid right now for the next three months. Hello, I pay every month on my car insurance. My policy is for a year but they want me to pay. This is really creepy. What an introduction to having a car note. This is actually my first car note. At this point, i'm ready to tell them to sell the vehicle and just keep paying my regular note so that they won't be awarded a judgement. They threatned that the vehicle won't sell for even half of what I owe if it goes to an auction, after this is done then their law department will get a judgement and take 25% of my wages off of the top. I just don't know what else to do.
Tmeda, you need to contact an attorney ASAP. I mentioned previously that too many things just don't add up. A repo after 30 days is UNHEARD of. And now they want you to prepay your insurance? These guys are jerking you around. Get some legal help. You DO NOT want this to turn into a judgment against you.
I cannot afford a lawyer as of right now. Can I just request that they sell the vehicle and keep paying on it to avoid them from getting a judgement. If I am still paying can the judge award a judgement against this?
This is exactly where a lawyer can really help. If you keep paying, while asking the dealer to sell the vehicle, you're doing a voluntary repo. Keep in mind that a repo, voluntary or not, paid or unpaid, is NOT GOOD on your credit reports. It's still a repo no matter how you cut it. From what you've described in your posts, the lienholder appears to be taking you for a ride. Again, get some legal help!
You really do need to talk to a lawyer. Many of them give a free initial consultation, which should be long enough to find out if what they have done is legal. Never take their word for it--they'll lie through their teeth. There are also legal services for people who can't afford lawyers. Look in the phone book. If you can't find anything else, call your local bar association. They can probably help you get some free legal advice. And I would never keep paying after they repo the car. It's going to be a repossession on your credit report anyway. Keep your money for whatever settlement you may have to make. They may keep making up fees, etc as long as you're paying. And they may make a mistake on the repo and not be able to collect. You also want to make sure that they can collect a deficiency balance in your state. In some states they can't, so why keep giving them money?
Good points from everyone. I am going to seek free consultation in a few minutes. Thank you so much for helping me in this situation. Should I even call them back and let them know to sell it or just wait and talk to a lawyer?
I'd talk to the lawyer first. Ideally, you want to get the vehicle back and get your payments all squared away - and hopefully for less than the $3500 that the lienholder is asking.
Please let us know how this turns out. What you've described here sounds very, very fishy. I've had a repo personally, (but in a different state) and they are taking you for a ride. I'm sure that you'll come out ahead with a lawyer. If they've damaged your car during the tow, they need to pay for THAT too! Do NOT authorize ANYTHING until you seek legal advice. If the first lawyer doesn't help, keeping calling down the list until you get enough help. There should be legal aid available, too! Hang in there. Don't give up. We're here with ya.
