Dealing with auto financing can be stressful, especially when facing potential repossession. If you have a car loan with Westlake Financial Services, you might be concerned about how quickly they can repossess your vehicle if you fall behind on payments. This article, as part of Car Repair Online’s commitment to providing helpful and reliable information, will delve into Westlake Financial’s repossession practices and what you need to know to protect yourself.
Westlake Financial Services is a major player in the auto finance industry, particularly known for working with individuals who have subprime or near-subprime credit. Understanding their procedures regarding repossession is crucial for anyone financing a vehicle through them.
Understanding Westlake Financial and Vehicle Repossession
To understand how long Westlake Financial might take to repossess a car, it’s important to first know who they are and their approach to loan servicing and repossession.
Who is Westlake Financial Services?
Westlake Financial Services, officially Westlake Services, LLC, is a large, privately held auto finance company headquartered in Los Angeles, California. They operate across the United States through a vast network of dealerships, providing financing solutions for both new and used vehicles. Westlake specializes in subprime and near-subprime auto loans, meaning they cater to borrowers with less-than-perfect credit scores. These types of loans often come with higher interest rates due to the increased risk of default.
Alt text: The corporate headquarters building of Westlake Financial Services in Los Angeles, California.
As a subprime lender, Westlake Financial is statistically more likely to deal with borrowers who may face financial difficulties. This context is important when considering their repossession practices.
Does Westlake Financial Repossess Cars?
Yes, Westlake Financial does repossess vehicles. Like any auto lender, repossession is a tool they use to recover losses when borrowers default on their loan agreements. While the original article highlights a case of wrongful repossession, it underscores the reality that Westlake Financial actively repossesses vehicles when payments are missed.
Crucially, there’s no set waiting period before Westlake Financial can initiate repossession. Many borrowers mistakenly believe there’s a grace period or a certain number of missed payments they can make before repossession becomes a threat. However, according to legal guidelines and standard loan agreements, Westlake Financial can technically begin the repossession process as soon as you are in default, which can be just one day after a missed payment.
While immediate repossession after a single missed payment might be rare, it is within their legal right. Factors influencing the timing of repossession can include:
- Your Loan Agreement: The specific terms of your loan agreement with Westlake Financial will outline the conditions of default and their repossession rights.
- State Laws: Repossession laws vary by state. Some states may have regulations regarding notice or the “right to cure” (an opportunity to catch up on payments).
- Westlake Financial’s Internal Policies: While they have the legal right to repossess quickly, Westlake might have internal procedures that dictate their actions. However, these are not publicly available and shouldn’t be relied upon.
- Communication and Payment History: If you have a history of late payments or have stopped communicating with Westlake Financial, they may be more likely to proceed with repossession sooner.
The Car Repossession Process with Westlake Financial: What to Expect
Understanding the general repossession process can help you anticipate Westlake Financial’s actions and prepare accordingly.
- Default: Default occurs when you violate the terms of your loan agreement, most commonly by missing payments.
- Demand Letter (Potentially): While not always legally required, Westlake Financial might send a demand letter informing you of the default and demanding payment to bring the loan current. This is not guaranteed.
- Repossession: Westlake Financial can hire a repossession company to take possession of your vehicle. In most states, they can repossess your car without prior notice and without a court order, as long as they don’t “breach the peace.” “Breach the peace” generally means they cannot use force, threats, or illegal entry onto your property.
- Notice of Sale: After repossession, Westlake Financial is legally required to send you a notice of sale. This notice will inform you that your car will be sold, either at a public auction or private sale. It will also detail your rights, such as the right to redeem your vehicle (pay the full loan balance plus repossession costs) or reinstate the loan (if permitted by your agreement and state law).
- Sale of Vehicle: Westlake Financial will sell the repossessed vehicle. The proceeds from the sale will be used to pay off your outstanding loan balance, including repossession and sale expenses.
- Deficiency Balance (Potentially): If the sale price of the vehicle does not cover the full loan balance and associated costs, you may be responsible for paying the “deficiency balance.” Westlake Financial can sue you to recover this amount.
Alt text: A tow truck preparing to repossess a parked car, illustrating the vehicle repossession process.
Defenses and Your Rights if Westlake Financial Pursues Repossession or a Deficiency Balance
While Westlake Financial has the right to repossess your vehicle, you also have rights and potential defenses. The original article touches on some crucial legal points that are worth understanding:
“Commercially Reasonable” Repossession and Sale
Every aspect of the repossession and sale process must be “commercially reasonable” under the Uniform Commercial Code (UCC), which is law in every US state. This includes the method, manner, time, place, and terms of the sale. If Westlake Financial fails to conduct the repossession and sale in a commercially reasonable manner, it could be a defense against a deficiency lawsuit.
Examples of commercially unreasonable practices could include:
- Improper Notice: Failing to provide proper notice of the sale.
- Inadequate Sale: Selling the vehicle at a price significantly below market value.
- Unreasonable Expenses: Charging excessive repossession or sale fees.
Holder in Due Course Rule
The “Holder in Due Course Rule” is a significant protection for consumers. It states that if your car dealership engaged in fraud or misrepresentation when selling you the car and financing, you can raise those claims and defenses against Westlake Financial, even though they purchased your loan contract from the dealer. This is because the loan contract must contain a notice that informs any holder (like Westlake) that they are subject to any claims the borrower could assert against the original seller (the dealership).
The example in the original article of Danielle Gump illustrates this perfectly. She purchased a car with significant defects, and because of the Holder in Due Course Rule, she could use the dealership’s breach of contract as a defense against Westlake Financial’s deficiency lawsuit.
Statute of Limitations
There is a legal time limit, known as the statute of limitations, for Westlake Financial to sue you for a deficiency balance. In Florida, as mentioned in the original article, the statute of limitations for breach of a written contract is five years. This timeframe varies by state, but it’s crucial to be aware of the statute of limitations in your jurisdiction. If Westlake Financial waits too long to file a lawsuit, the case could be dismissed.
Breach of Peace During Repossession
As highlighted in the FAQ of the original article, Westlake Financial and their repossession agents cannot “breach the peace” during a self-help repossession. If they damage property, use force, or engage in threatening behavior while repossessing your vehicle, it may be considered a breach of peace, which could have legal ramifications for Westlake Financial.
Westlake Financial’s History of Legal Scrutiny
It’s also relevant to note Westlake Financial’s history with regulatory bodies, as mentioned in the original article. Lawsuits and consent orders from the Department of Justice and the Consumer Financial Protection Bureau (CFPB) highlight past issues with their practices, including:
- Servicemembers Civil Relief Act (SCRA) Violations: Unlawful repossessions of vehicles owned by protected servicemembers.
- Deceptive Debt Collection Practices: Using deceptive tactics to collect debts, including impersonating other entities and making false threats.
- Misleading Loan Information: Failing to properly disclose the financial impact of loan modifications and interest rates.
These past legal issues don’t directly dictate the repossession timeline, but they provide context about Westlake Financial’s operational practices and the importance of understanding your rights as a borrower.
Frequently Asked Questions: Westlake Financial Repossession
Q: How many missed payments before Westlake Financial repossesses?
A: There is no set number. Westlake Financial can legally repossess your car even after just one missed payment. While they might not always do so immediately, it’s crucial to understand that default can trigger repossession at any point after a missed payment.
Q: Can I stop Westlake Financial from repossessing my car?
A: Yes, in some cases. The best way to prevent repossession is to communicate with Westlake Financial as soon as you anticipate or experience payment difficulties. Options to explore include:
- Loan Reinstatement: Paying the past-due amount, late fees, and repossession expenses to bring your loan current.
- Loan Redemption: Paying the entire outstanding loan balance, including all fees and expenses.
- Loan Modification: Negotiating a change in your loan terms, such as a lower interest rate or extended payment period (though this is not always guaranteed and may result in paying more interest overall).
- Voluntary Surrender: If repossession is inevitable, voluntarily surrendering your vehicle might help avoid some repossession fees and potentially mitigate a deficiency balance.
Q: What should I do if Westlake Financial repossesses my car?
A:
- Remain Calm and Cooperative: Do not resist the repossession agent, as this could lead to legal trouble.
- Gather Your Belongings: You have the right to remove personal property from the vehicle.
- Review the Notice of Sale Carefully: Understand your rights and deadlines, including the right to redeem or reinstate your loan.
- Consider Your Legal Options: If you believe the repossession was wrongful or not commercially reasonable, consult with a consumer rights attorney to discuss your options.
Conclusion: Be Proactive and Understand Your Rights
While there’s no definitive answer to “how long does Westlake Financial take to repo a car?”, the key takeaway is that they can act swiftly once you are in default. Proactive communication, understanding your loan agreement, and knowing your rights are crucial to navigating potential financial difficulties and repossession risks with Westlake Financial. If you are facing repossession, seeking advice from a legal professional specializing in consumer rights can provide valuable guidance and protection.
