How does a borrower deal with wrongful repossessions?

On Behalf of | Nov 29, 2021 | Wrongful Repossession

Buyers who do not make their car loan payments could find the vehicle repossessed. Financiers expect timely payments and do not want to lose money on a Minnesota car sale. However, just as borrowers may make mistakes, so might the lender. A financing company’s error could lead to the wrongful repossession of a car, leaving the former driver in a difficult position. There are some steps the borrower might employ to deal with the stressful situation.

Taking action after a wrongful repossession

Borrowers sign legal contracts with lenders that spell out the terms. A lender generally cannot change the terms arbitrarily. If there’s a clause in the contract allowing them to do so, that’s another matter. Borrowers may find it beneficial to review all terms and conditions before signing any lending contract.

That said, a lender could make illegal changes to a contract that leads to a wrongful repossession. When that happens, you may explore legal options to get the car back. One party usually cannot change an agreement without the other party’s written consent. Attempts to change terms and repossess a vehicle may not be legitimate.

Focusing on getting the vehicle back

Borrowers may take legal action to address wrongful repossessions. Of course, the borrower would need to prove the repossession is wrongful. When the lender says a borrower missed three payments and the borrower shows bank statements reflecting payment, that might be enough proof to show the lender made a mistake.

State laws might provide options to reclaim or redeem a repossessed vehicle that has been legally taken away. Persons who desperately need their vehicles back might find the law compels a lender to provide solutions, such as returning the car if the borrower catches up on payments or agrees to a particular payment plan.