Do you need help with a repossession? Is a creditor threatening to take your car? Has a creditor repossessed your vehicle but is still demanding that you pay? Is a repossession showing up on your credit report?
Financial Warranty is here to help! If your car loan lender repossesses your car, you probably are not entitled to any notice prior to the repossession. However, in most states the car lender must provide you with certain notices after the repossession.
Most states do not require car loan lenders to give debtors any kind of notice before they repossess vehicles, but, in many cases, they have to inform you about certain issues regarding the repossession after it occurs. In most states, the bank must notify you, in writing, within a short time, usually five days after it has repossessed the car but before it is sold or auctioned. This notice must include a written notice of your right of redemption and/or right of reinstatement, among other things.
In the event you don’t reinstate the car loan or redeem the car, the lender is also required to send you a written notice if it intends to sell the vehicle. If the car is sold, the lender must provide you with an accounting of how the proceeds of the sale were applied against your debt.
If the amount of the sale is not sufficient to cover all of these items, then you owe what is called a deficiency balance. The creditor must notify you of the amount of that deficiency. Normally, if you don’t pay the deficiency, the creditor may take further action, such as suing you for the balance.
If the creditor recovers more than what’s owed on the obligation from the sale, then there is a surplus balance. The creditor must give you an accounting of the surplus and pay it to you.
So where do you start? Financial Warranty’s team of legal and financial professionals will go over your case and make sure that your rights – and money – are protected.
