Drivers in Minnesota rely on their cars. Many of them may not live in an area with bus service and even rideshare can get expensive. Sometimes, people find to their shock that their car has been wrongfully repossessed. This occurs when a creditor takes collateral they’re not entitled to, either by accident or in bad faith. Wrongful repossession is confusing for the people it happens to. Knowing what steps to take in this kind of situation is important.
What to do after a wrongful repossession
If you have had to deal with a wrongful repossession, the first thing to do is find proof that you have made all the agreed-upon payments on time. Contact your lender and make this proof available to them. Remember, make copies of your receipts to protect yourself. You don’t want to lose the only copy of the proof that you paid on time.
If the lender disputes your account of what happened, review some other documents related to your loan. Go over the contract you signed at the time you took out the loan. Did you actually comply with all the terms? If you need help interpreting the contract, you may want to speak with a lawyer who may be able to suggest the next step to take.
How repossessions are conducted
There are rules and regulations related to repossessions in general. The people taking your vehicle should not be deceptive, and they must not breach the peace. They also cannot take personal belongings that are in the car at the time. Usually, you will receive a notice of default before any attempts at repossession. If you have made all your payments on time, a notice of default should be a red flag that a potentially wrongful repossession may be on the way.
