Discovering your car missing from where you parked it can be alarming. The immediate question that races through your mind is likely: was my car stolen, or was it repossessed? Understanding the difference is crucial for knowing how to proceed and get your vehicle back. This guide provides a clear, four-step process to help you determine what happened to your car and what actions you should take.
1. Determine if it Was Repossessed or Stolen
The first step is to figure out whether your car was repossessed due to overdue loan payments or actually stolen. If you’ve fallen behind on your auto loan payments, repossession is a possibility. Even making a payment after missing several might not immediately bring your account current, and the lender may have initiated the repossession process.
To quickly clarify the situation, contact your auto loan lender immediately. They can confirm if a repossession order was issued. Simultaneously, call your local police department. Repossession companies are generally required to notify the police before repossessing a vehicle.
By contacting both your lender and the police, you can quickly confirm whether your car was repossessed or stolen. If it was repossessed, ask for key details such as:
- The name of the repossession company.
- Their contact information and location.
- The date and time the police were notified about the repossession.
This information is vital for the next steps in recovering your vehicle.
2. Review Your Auto Loan Contract for Repossession Terms
Once you’ve confirmed your car was repossessed, the next crucial step is to locate and carefully review your auto loan contract. This document, often called a Retail Installment Sales Contract (RISC) if you financed through a dealership, outlines your rights and the lender’s procedures in case of repossession.
This contract details the terms of your loan and, importantly, specifies what happens if your car is repossessed. It will clarify whether you need to pay the entire remaining loan balance to get your car back, or if you only need to catch up on the past due payments.
If you can’t find your copy of the loan agreement, don’t worry. You can request a copy directly from your lender or the dealership where you purchased the vehicle. Furthermore, if any personal documents or belongings were inside the car at the time of repossession, you have the right to retrieve them. Lenders and repossession companies have procedures for returning personal property.
Understanding your loan contract is essential because it dictates your financial obligations and rights following a repossession. Besides the loan balance or overdue payments, be aware that the lender may also charge you for repossession-related expenses like towing and storage fees.
3. Understand Repossession Letters: Notice of Intent and Deficiency Notice
After a repossession, the lender is legally required to send you specific notices. The first important letter you should receive is a Repossession Notice, officially known as a Notice of Intent to Sell Property.
This notice is crucial as it outlines the steps you can take to potentially get your vehicle back. It will detail:
- The amount you need to pay to reinstate your loan and recover your car.
- The deadline for payment.
- Information about the planned sale of your vehicle, if you don’t reinstate the loan.
After the vehicle is sold, usually at auction, the lender will send a second notice called a Deficiency Notice. This letter informs you whether the sale of your car covered the outstanding loan balance and repossession costs.
If the sale price was less than what you owed, the Deficiency Notice will state the deficiency balance, which is the remaining amount you still owe the lender. You are legally obligated to pay this deficiency balance.
4. Seek Help from Experienced Consumer Lawyers if You Suspect Wrongful Repossession
It’s important to remember that even if you were behind on payments, repossession agencies and lenders must adhere to strict legal guidelines during the repossession process. There are laws in place to protect consumers from unlawful repossession practices.
If you believe that any aspect of your car’s repossession was handled improperly or illegally, it’s vital to seek legal advice from experienced consumer lawyers who specialize in auto repossession. Potential violations could include:
- Breach of peace during repossession: Repossession agents cannot use force, threats, or intimidation.
- Repossession of the wrong vehicle.
- Failure to provide proper notices.
- Incorrect calculation of deficiency balance.
If you suspect any wrongdoing, contacting a law firm like Flitter Milz for a free legal evaluation can help you understand your rights and determine if your vehicle was wrongfully repossessed. They can assess your situation and advise you on the best course of action to protect your interests.
