What does it mean when your car is wrongfully repossessed?

Wrongful repossession is when the collateral you put up for your loan is taken back by the lien holder, either illegally or by mistake. Repossessions are matters between the borrower and the lender, and they are strictly private.

How to file a lawsuit for wrongful repossession?

Laws in most states require a demand letter to be sent in advance of filing a lawsuit. Include in the letter the demand for the immediate return of your car. Add in the letter an additional demand for a specific amount of money to cover the damages you sustained as a result of the wrongful repossession.

When do you become a defaulter on a repossessed car?

If your payment is late by 30 days, you may be considered a defaulter. Bearing the fact that repossession is a hassle, the lender may not consider you in default until 90 to 120 days of late payments. Otherwise, the lender should be more lenient if you have a good payment history.

How can I get my car back after a repossession?

Redeem your loan – Redeeming auto loan is allowed in many states to get the vehicle back. However, you’ll have to pay the full loan balance, plus any extra cost, which may include late fees, repair expenses, collection costs, storage fees, repossession costs, missed payments, additional fees, and others.

Can a repossession agent not follow the law?

If the repossession agent didn’t follow the law when they took your vehicle, it may be considered unlawful vehicle repossession. Repossession agents must inform the local police of their intent to repossess a vehicle.

What should I do during a car repossession?

During the repossession, take written notes of the events that occur. Be sure to include: Gather and remove all personal property and car loan documents from the vehicle, including: Family items: pay checks, medication, school books, clothing, etc. Work items: computers, briefcases, equipment, etc.

When did Wells Fargo start repossessing my car?

Wells Fargo is violating state and federal laws regulating repossessed vehicles, a class action lawsuit alleges. The plaintiffs say they were making loan payments to Wells Fargo when their vehicles were repossessed starting in 2014.

Can a police officer file a wrongful repossession lawsuit?

At this point, the police may have crossed the line from keeping the peace to breaching the peace. This could be a violation of your constitutional rights, enabling you to bring a lawsuit against the police department, the repossession company, and the lender for a wrongful repossession.

Can a bank repossess a car from a delinquent consumer?

Banks that serviced auto loans repossessed cars from delinquent consumers, even though an agreement had been reached to cancel the repossession, according to a report from the Consumer Finance Protection Bureau, an independent federal agency tasked with overseeing financial institutions.

How much money can I recover for wrongful repossession?

In addition, there are also certain statutory penalties in the amount of $500 under the Uniform Commercial Code for the finance company’s violation or improper repossession. This is in addition to the amounts previously set forth or actual and consequential damages associated with an inappropriate or wrongful repossession.