What Happens If My Car Gets Repossessed by Mistake?

Your car may be repossessed if you fail to make your loan payments on time. But what if your car is wrongfully repossessed by mistake?

Fortunately, you have rights in a car repossession under Florida law. And, if there’s been a mistake, a Fort Lauderdale wrongful car repossession attorney from the Loan Lawyers law firm can help you explore ways to get your car back.

If you’re dealing with a wrongful motor vehicle repossession, take the steps we outline below to question what’s going on. For immediate assistance, contact the Loan Lawyers to schedule a free consultation.

Confirm Whether the Repossession Was a Mistake

My car was repossessed – what do I do?

The first thing you should do is ask the repo agent to let you get your car’s registration and check the VIN – vehicle identification number – on it against their repossession order. Sometimes, the lender will type the wrong VIN into their system and repossess the wrong vehicle.

Call the police to confirm that the repo company has notified them of the repossession order. They are required to inform the police about their actions. If the police haven’t been notified, tell them you need to report a theft.

Car Repossessed? Contact the Lender or Loan Servicer Immediately

Was your vehicle repossessed? If you know you are not behind on your car loan payments, contact your lender or loan servicer and ask what’s going on. Sometimes, a lender will forget to cancel a repo order after receiving a late payment.

Confirm whether they mean to repossess your car. If they have overlooked a payment, offer to provide a copy of your bank statement or a payment receipt to confirm the transaction.

If the repossession order is legit, ask whether you can stop it by making an immediate payment. Ask if you can have a missed payment applied to the end of the loan.

My Car Was Repossessed. What Are My Rights?

In Florida, a lender can repossess your vehicle without notice if you default on your loan. A lender can initiate a repossession if you are as little as 30 days late with a payment.

But neither the creditor nor their agent (the repo man) may commit a “breach of the peace” by using physical force or threats of force to take your vehicle.

Here’s what should happen if your car is repossessed:

• The repo agent should inventory all personal property found in your car and notify you within five business days so that you can claim it at no cost. If you are present during the repossession, they should allow you to retrieve your belongings.
• The lender should provide written notice about their plan to sell your vehicle at least 10 days prior to the sale.
• You should be allowed to redeem the loan and reclaim your vehicle by paying the full balance, plus any late fees and additional repossession fees, such as towing and storage costs.
• If the lender sells your car, the sale must be in a “commercially reasonable manner,” meaning not sold for significantly less than fair market value. A sale is intended to cover what you owe; if they don’t get enough, you could be liable for the difference.
• If the repossessed vehicle sells for more than the loan payoff, the excess should be sent to you.

Get Legal Help From Our Fort Lauderdale Wrongful Car Repossession Lawyers

If you are having problems making car payments, you don’t have to be misused by your lender or their repo agent. The Loan Lawyers have a proven track record of helping clients resolve wrongful car repossessions and of providing practical solutions to debt problems.

Dealing with a wrongful repossession? Call us in Fort Lauderdale today at (954) 523-HELP (4357) or reach out online for a free review of your debt solution needs.