If you rely on your car to get to and fro, then it may be an absolute nightmare to think of the prospect of not having access to it. This is what motivates many consumers to continue making timely loan payments. What if you were consistent in making loan payments, but your car was still repossessed though? While this may seem implausible, it does happen.
An unlawful repossession is an instance in which a debtor is timely in making loan payments yet their car is still repossessed. Sadly, this happens more often than you might expect. They are a few common reasons that wrongful repossessions occur.
The repossession company receives notification from the lender that one of their borrowers is in default on their loan. The bank offers the repo driver a fee to go out and recover the vehicle.
There are numerous pieces of information that repossession companies are supposed to check before towing away a suspect car. This includes the vehicle color, make and model, trim, vehicle identification number and license plate number. If a driver isn’t diligent in reading their work orders and properly vetting the vehicle, then they may pick up the wrong car.
Most lenders require you to maintain adequate auto insurance on your vehicle that goes beyond Minnesota’s minimum coverage limits. This protects the value of their investment if you were to get into an auto accident.
Lenders generally require borrowers to send them proof of coverage in addition to making regular loan payments. If you switch insurance carriers and that information doesn’t reach them or isn’t properly noted, then your lender may repossess your vehicle.
Your car may be unlawfully repossessed if your payments aren’t credited appropriately because of some type of computer glitch or paperwork issue.
It can be extremely inconvenient if you walk outside to head out to school, work or somewhere else, and your car is missing, especially if you’ve been consistent in making your payments on it. You may want to consult with an attorney if this has happened to you.
Your lawyer can advise you when repossession is illegal and advise you of your right to recover your vehicle and any compensation for the damage done to it when it was recovered here in Vadnais Heights or elsewhere in Minnesota.