topic Re: Auto Repo in Rebuilding Your Credit

Auto Repo

Anonymous — Sun, 07 Dec 2008 18:00:01 GMT

I purchased a used vehicle in Feb of 08 and my payments were due the 23rd of the month. I made my first payment in March, they said they didnt receive the check even though it had cleared my bank and so they didnt credit my account until March 31, 6 days late. Well I made payment in April, mailed it April 19 and it credited to my account April 25. I made another payment May 1, this still was not due for another 22 days. June 18 the vehicle was repossessed. I contacted the bank and they said that I had to pay $570 in repo fees and my late payment fee for March and April, that that was the reason for repo. The vehicle July 10, 2008. I was never notified of intent to sell nor that it was sold. Now this is showing up as a repo and 30 days late! They are refusing me an account statement stating that it is purged and my account is closed and they dont have access. I spoke with one woman and she said that if the owner would allow it then they would remove but it is against policy because it costs money. I said with a written agreement I would pay the costs of that. She still refused. This is a VERY small bank, not even statewide. What can I do? I am buying a house, despite my credit scores they are willing to finance me a USDA loan as long as I can get this straightened out.

Message Edited by pullingmyhairout on 12-07-2008 10:00 AM

Re: Auto Repo

Anonymous — Sun, 07 Dec 2008 19:17:21 GMT

Have you checked your states laws on repossessions? Each one can be different and require different things.

I have never seen where they do not have to notify you of intent to resell.

And, in my opinion, it all sounds a little fishy. How can you send in a payment virtually a month early and it posts late to your account? Sounds like a bank issue to me. As far as them telling you they have no information on your account and it has only been 5 months. That sounds fishy also.

Once you get your states repo info, I would get copies of all the checks you sent showing when they cleared your bank. I would file complaints with the AG, the BBB, the FTC and who ever controls how banks operates.

Re: Auto Repo

Anonymous — Sun, 07 Dec 2008 20:21:07 GMT

It sounds like your small bank is doing some illegal practices (Intentionally cashing checks late) that some creditors once done in the past. I wont name the creditors as I am sure you probably know, but file a complaint with the attorney general and etc and print out your check images online on when they cleared.

Re: Auto Repo

Anonymous — Sun, 07 Dec 2008 21:06:39 GMT

I believe that they have to notfiy you in writing that you are in default prior to repo'ing the car, and they have to notify you of the auction time and place I believe. I know the laws do very by state, but I am fairly sure this whole situation is wrong. Unfortunately if you are in the middle of buying a house, this is not likely to clear up quickly. You may have to reslut to legal action to get this fixed.

Re: Auto Repo

Anonymous — Sun, 07 Dec 2008 21:17:45 GMT

I checked with an attorney right after this happened. He said there was really nothing that I could do because the repo was intiated because of the late fees. I provided copies of the cancelled checks and they said that they will not give me back the vehicle because it was sold. They had sent certified mail to another address like 2 houses down from me, same apt number and someone there signed for it. NOT ME! Well they said that it was proper notice, 'how were they suppossed to know?', thats what they said to me. The realtor said that hopefully the lender will manually review this stuff and overlook, He said there was a good chance of that happening. As far as my understanding, a finance company can put into place what tems they want. As far as the checks go, the finance company was the one holding on to them, they were clearing from my bank! I am just going to pursue other legal advice if need be. It just really makes me mad that companies can do this to people!!!

Re: Auto Repo

gdtobefree — Sun, 07 Dec 2008 21:25:09 GMT

First of all, What state do you live in?

Do you have a copy of the loan contract you signed when you bought the vehicle?

This sounds highly illegal, I have never heard of any bank IE loan Co repoing for past due late fees.

Re: Auto Repo

Anonymous — Sun, 07 Dec 2008 21:51:32 GMT

Well , it would be very unusual for them to repo over late fees. the fact that they had incorrect contact info may play into this. If they had been trying to contact you repeatedly and did not get through to you I could see them doing it. Did they contact you via phone, because no bank would have gone through the whole rep process without at least trying to call to get the past due payments? Also, look over the contract you signed and make sure all the info was inputed correctly. If you signed the contract with incorrect info you probably have no recourse, but if the contact info that is on the contract is accurate and they did not properly inform you then you could most likely sue them for not properly notifying you of the default. Something is missing from this picture though. Even more than a house loan, banks do whatever they can to avoid a repo as they loose tons of money and future interest income on the deals. I am betting on them not being able to contact the owner (whether by their fault or his) and that, along with the payment problems and late fees, led to this.

Also, were you getting statements? Did you not see the alte fees on there and either pay them or call ot dispute them? Was this a case of you didn;t really read the statements when they came in, or did you never recieve them. If you were recieving statements, and those do not show the late fees, etc then you might have some legal room. Same thing goes if you were not recieving the late fees (strengthening your argument for them not notifying you of the default as long as the address on your contract was accurate) Last thing, if you did recieve statements that showed the balances owed, it probably voids any arguments against the bank as the had the correct address and the fees would have been listed (and usually a warnifn notice as well if past due or any fees owed.)

Re: Auto Repo

Anonymous — Sun, 07 Dec 2008 22:16:36 GMT

First of all I am in NC. Let me explain about this 'bank'. I found this vehicle with Rick's Used Cars. They say that they help people with bad credit rebuild their credit. The owner of thiscar lot, his father owns this lil bank. This is not a big operation. In my contract it does not state anything about repoing for late fees. I received a payment book in the mail, so I know they had the correct address. They never sent any letters out at all except the on they sent somewhere else, unless my mailman just misread the address. They called me ONE time, this was at like 4:30 pm the day it was repoed. I do not get off of work until 5pm. All the message said was for me to call them. I did and obviously it was after 5pm so the bank was closed. I was going to call them the next morning. I did not have to opportunity to call them until after the vehicle was repoed because it all happened the same day as the phone call. So far everything that I have heard from a legal standpoint is that there is nothng that I can do. This is supposed to be completely legal in NC, a lender can set its own terms. But no where in the contract does it say that they can repo for late fees.

Re: Auto Repo

sekada — Sun, 07 Dec 2008 22:31:09 GMT

First off, I'd love to know where in NC bc I think I may have heard of Ricks but I'm not sure. Second, dealers who finance themselves thru their own bank are really dangerous, bc they make money the more often you're late. That was a big incentive for them to cash your checks late.

The good news is, you're in NC which is a relatively consumer-friendly state; plus, this happens at a time when lots of people are having credit problems, which makes ppl a little more understanding sometimes.

I dunno how (or why) you're buying a house with those scores, though -- and in NC the market isn't down much, so you're not even getting a great deal on a house in all likelihood. You should almost certainly rent longer if you can... if you wind up with a shady mortgage dealer, you're really toast.

In any case, call the Atty Gen and FOLLOW UP in writing after the call. Copy the dealer, the bank (separately), YOUR bank (where the checks were cashed) and the Better Business Bureau with the letter. In addition, pull your old bank statements, find out when the checks were cashed and compare them to your check register. If you can produce the payment coupon book that proves they had your contact info, make a copy of the cover to prove it, and attach it to your letters. If they're really trying to cheat you, I think you can rectify at least the repo on your account. You may not get your back, which sucks, but unless it was a car worth more than $5k it's not worth going to court over. Keep harassing them, the AG and the BBB, and if you need to, call your congressman. Those guys are surprisingly good at making things happen sometimes.

Re: Auto Repo

Anonymous — Sun, 07 Dec 2008 22:32:30 GMT

It does not matter if it spelled it out on the late fees. They can repo a car for ANY amount that is owed them. The question is did they follow the proper procedures to do so. If they attempted to call you, and they mailed a letter to you (that stuff is usually automatically generated so if the paystubs went to the right address, the default letter should have as well), then they are probably within their right to repo. They are not liable for the mailman's mistakes as far as delivery of the mail as long as they sent it. And they did call (even if it was really too late to do any good.)

I just don't see the point in them repoing the car under these circumstances. The bank is not going to make money by repoing the car and it is alot of hassle and expense for them to so so. Check the BBB to make sure they don;t have some scam going like they loan you the money for the car, wait for the first reason to repo, repo the car, adn then the bank "auction" it back to his kids dealer to sell again or something like that.

Re: Auto Repo

Anonymous — Sun, 07 Dec 2008 22:47:56 GMT

First of all, letme say these things again because its getting past some people. This bank is not a big company. The dealership, which is located in Greensboro, NC, is tied with this mom and pop type bank that prey on ppl like me. NOTHING is auto generated with this company! i asked because I was wondering the same, why there had been NO letters sent or nothing. They ahve refused to provide me with the address they have on file, which goes to show that they are screwy with ppl. And as far as them not making money off of a repo, these people did. When my vehicle was repoed I called 911 they gave me the number of the repo man. I called and he told me his fees were 200! When talking to the finance co the fees were 570. When the car lot and the bank are owned by the same family they make money. As soon as it was repoed I went online about 2 weeks later and my SUV was on their lot for swle $200 more than what the orginal price was when I bought it. There are no records of them on BBB and I have contacted everyone that I could possibly on this issue.

Me buying a house....my personal bank has offered me 6.15% FIXED, I have been a customer with them for 10 years. I have checking and savings and time on my job. I dont believe that I would even try to secure financing with anyone else right now.

Re: Auto Repo

Anonymous — Sun, 07 Dec 2008 22:52:37 GMT

Oh and no I am not worried about getting the vehicle back. It was worth $8K but this is enough of a headache for me unless something arises out of this then I wont bother with it.

Re: Auto Repo

Anonymous — Mon, 08 Dec 2008 00:27:49 GMT

What you just described is similiar to what I was trying to point out. It seemed like a scam. They find a reason to repo, sell it back to the son's car lot, and then the car is re-sold again for full market price. Each time they do this they get a down payment, a few payments on their books, and some fees. First time you are late or something gets screwed up they pounce. On top of that, they probably charged you a ridiculous rate for the loan and price for the car.

Sorry to hear that. At least you local bank is wiling to look over that. Most banks would not even look at your file with a recent repo showing for a house loan right now.

Re: Auto Repo

sekada — Mon, 08 Dec 2008 00:45:09 GMT

Man, that is a scam-a-lam-a-ding-dong if ever I heard one. Call the AG TOMORROW, that's MONDAY, and tell them they should be embarassed that these people are still doing business. The state should be prosecuting them -- AFTER they shut them down.

If you have any spare money at all, or know any good lawyers (the key word here is good, not another scammer) then your best bet is to sue. Filing a suit should cost about $300 plus atty's fees and that gives you the right to all this info they won't give you -- including who the car was sold to and for what price, etc. Once you have that info I think you'll have a much better chance. I doubt they'll let it go to court, because it's not in their interests. You can always drop the suit once you have the info, if you really want to.

Finally, get your ducks in a row with this paperwork and keep an eye on the dealership... stay in touch with the AG's office, too. If the state does decide they're thieves and goes after them, or if they go under like a lot of dealerships are, you might as well file as a creditor. They may owe you $8k. If you can get even a fraction of that back it'll be worth the effort.

I know it's a pain, but remember, that's what they're probably counting on. People like this prey on those who haven't got a lot of money, time or energy. So take whatever you have and throw it at them, and they might back down.

Re: Auto Repo

Anonymous — Mon, 08 Dec 2008 01:55:54 GMT

Ok, so I think I found this company on BBB. I was looking in the wrong territory. I have found this company, Federal Financial Services(listed as this<--) aka United Financial Group is listed under 3 different locations. What I found, they specialize in consumer loans BUT I cannot find their location. I put in the phone number on BBB site and do a number search in their territory but find nothing. If this co is the one that has other locations, they have an outstanding reputation with the BBB, no compaints, etc. So now I;m like aaaarrrrggggghhhhh! Why Why Why!!! I could give a rats a*s about getting any monies at all out of this, I just want this off my credit. I would be willing to pay these people to take it off. I will just keep making phone calls,sending emails and letters and hopefully soemthing will come out of this.

Re: Auto Repo

Anonymous — Mon, 08 Dec 2008 02:55:49 GMT

There could be numerous companies doing business under that name licensed in different states. I would not put any faith on way or another that you foudn the right one unless you match an address or a name. That whol situation just sucks.

Re: Auto Repo

Anonymous — Mon, 08 Dec 2008 04:33:17 GMT

I would also file complaints with the BBB and the AG and state for your desired outcome that you wish for the entire account to be removed from your CR and a letter stating that the account is resolved and will not be sold off to any collection agency.

Re: Auto Repo

Anonymous — Mon, 08 Dec 2008 10:02:59 GMT

I have followed all the proper steps in filing a complaint with anyone under the sun. I have also requested from them the proper resolution, which would be removal from my CR. Now I just have to wait until I get a response. I will give them a week to 2 weeks to respond and then contact them again. Companies like this really need to be put out of business. They get by with this because they think ppl with bad credit are idiots and dont know where to go for info or how to pursue whats right. Well after being treated like this they will wish they had never crossed my path! Like I said this is a small bank, so small even since June they still knew who I was....

Re: Auto Repo

llecs — Mon, 08 Dec 2008 16:20:58 GMT

Like so many others suggested, contact the BBB and AG. Also consider sites like planetfeedback.com and ripoffreport.com to publicly list your issues with the financing company. In a sec, I'll jump to ripoffreport to see if there's anything there to help you.