Car repossessions have become increasingly common, especially with the current economic climate and rising debt levels. If you’re facing financial difficulties and have a car loan with Ford Motor Credit, you might be wondering, “Will Ford Motor Credit repo my car?” It’s a valid concern, and understanding the repossession process is crucial to protecting your rights.
How Car Repossession Works with Ford Motor Credit
When you finance a vehicle through Ford Motor Credit, you enter into a loan agreement. This agreement requires you to make timely payments. If you fall behind on your payments, Ford Motor Credit, like other auto lenders, has the right to repossess your vehicle. The moment you miss payments on your car loan or lease, Ford Motor Credit can initiate the repossession process.
Once Ford Motor Credit repossesses your car, they will typically sell it at an auction. Unfortunately, vehicles sold at auction often fetch prices significantly lower than their actual market value. After the auction, Ford Motor Credit will calculate a deficiency balance. This is the difference between the remaining amount you owed on the car loan and the auction sale price. You are then responsible for paying this deficiency balance.
Adding to the financial burden are repossession fees. These can include expenses for towing and storing your repossessed vehicle. These fees are added to your outstanding debt, further increasing the deficiency balance that Ford Motor Credit will attempt to collect.
Voluntary Surrender vs. Repossession: What’s the Difference?
Many consumers believe that voluntarily returning their vehicle to Ford Motor Credit when they can no longer afford payments is different from a repossession. However, legally, a voluntary surrender is treated the same as a repossession. Ford Motor Credit will still sell the car at auction and pursue you for the deficiency balance, just as they would in a standard repossession scenario. Don’t assume that returning the car voluntarily will prevent further financial obligations.
Dealing with Ford Motor Credit’s Debt Collection
Ford Motor Credit frequently employs debt collection law firms, such as Rubin and Rothman, to recover deficiency balances. These firms are hired to contact consumers, pursue debt collection, file lawsuits, and enforce judgments. It’s common for Rubin and Rothman to quickly initiate a lawsuit on behalf of Ford Motor Credit to recover the owed amount.
If you are sued by Ford Motor Credit for a deficiency balance, it’s crucial to respond by submitting an answer to the court. Failing to do so can result in a default judgment being entered against you. A default judgment means the court rules in favor of Ford Motor Credit without you having the opportunity to present your case. Submitting an answer forces Ford Motor Credit to prove their case and can provide you with leverage if you wish to negotiate a settlement.
If a default judgment has already been obtained, it is essential to act quickly. You typically have a limited time, often one year, to file an Order to Show Cause to vacate the default judgment. Vacating the judgment reopens the case, allowing you to defend yourself and explore options for resolution.
Negotiating with Ford Motor Credit and Rubin & Rothman
It is possible to negotiate settlements with Ford Motor Credit and their legal representatives like Rubin and Rothman. Experienced attorneys can often negotiate settlements that significantly reduce the deficiency balance you owe. In many cases, settlements can be reached that reduce the balance by a substantial percentage, sometimes as much as 50%. Furthermore, it’s often possible to secure interest-free repayment plans, typically over 12-18 months, which can save you considerable amounts in accrued interest.
Protecting Your Rights After Repossession
Car repossession and the subsequent debt collection can be overwhelming. If you are facing the possibility of Ford Motor Credit repossessing your vehicle or are dealing with a deficiency balance collection, it’s vital to be proactive in protecting your rights. Seeking legal advice and representation can empower you to navigate this challenging situation effectively. By understanding the process and acting assertively, you can work towards a more favorable resolution and mitigate the financial impact of car repossession.
