Someone who discovers their car is no longer in its parking space may assume theft, only to find a repossession occurred. Unfortunately, the actions taken might not follow the law’s guidelines. Such incidents could increase as the government notes an increased wave of car repossessions is possible. Those in arrears with a loan have rights, and repossessors cannot do whatever they want to take back a vehicle in Minnesota.
A coming wave of car repossessions
The Consumer Financial Protection Bureau points out that the current car buying and financing landscape might lead to an unusual increase in repossessions. Driving the possible increase is the higher cost of new and used automobiles. Car buyers may find themselves forced to pay more for a vehicle, meaning higher monthly loan payments.
Someone with a tight budget could run into problems making auto loan payments. Falling behind far enough on payments might result in a repossession. Lenders may become aggressive and seek to repossess vehicles to cover their losses. The legality of such behaviors may be dubious.
Troubling actions by auto lenders
Auto loan companies might deal with a more significant number of late payments than is typical. Regardless, a lender or dealership should not violate the law to repossess a car. However, some lenders ignore the law and may even overlook a bankruptcy court’s orders barring repossession.
The wrongful repossession of motor vehicles might involve changing the terms, such as ignoring a contract’s stipulated grace period. Some might not send a written notice warning about a possible repossession. A lender could even charge the borrower additional fees associated with the repossession or for returning personal property.
Car owners struggling with wrongful repossession tactics may take legal action to address the situation. The owner might recover the repossessed property and ask for compensation for losses.
