HELP!!!! Auto repo question

[nmorton79]

I have a question that maybe someone can help with...

My sister in law live in Philly.  I have no idea who she financed her car with, but this company came and took her car because she just over 30 days late with her payment.  What happened was she sent her payment via snail mail and it was returned to sender because she didn't have the right address written on the envelope(my sister inl aw had to put her dog down, so she was going through a really rough patch..he was her baby---so she doesn't remember why she wrote what she wrote on the envelope)..so she called the Finance company to let them know why the payment was late, and they would not listen to her, and they hung up on her.   They are now demanding payment of the entire account in full (a little more than $5000) in order for her to get her car back.  My question is can they do that?  Doesn't a finance company have to wait until the account is 90 days past due?    Any answers/advice is greatly appreciated

[llecs]

Your SIL needs to look at her contract to see what the terms are for default. I also had a repo and the finance company (Americredit) has the ability to repo the car if 10 days late. They took mine also at day 30, but in fairness, I was late consistently leading up to that, including 90 days just 30 days prior (check sent and cleared before repo). Americredit even stated that the car was just 30 days late and the CSR thought it was excessive. But in going back into the agreement, it said that it can be repoed after day 10. BTW, I was able to pay the payment, the next month's payment and fees to get it back.

Also, state law governs what a lender can or cannot do. Your SIL may want to review PA's laws to see what's allowed and what isn't. Reading the contract is key too. Some states do allow the lender to call in the loan.

[nmorton79]

Thank for the reply, llecs...do you know where my SIL would begin to look at PA state laws?  I'm thinking  she should try the state website, and the FTC.

Now that I think about it, she was living in NJ when she baught the car, and the finance company is out of NJ.  So shouldn't she be looking at NJ state laws? or PA since she now lives in Philly? (I also have to clarify that she was less than 14 days late with the payment)

What ever happens, DH and I are driving up from NC this weekend to take her to get the car back (they took the car from Philly to a lot in Northern NJ somewhere).  She is going to pay in full so she can be done with the whole mess.

Thanks again for you swift reply

[llecs]

http://ficoforums.myfico.com/fico/board/message?board.id=rebuildingcredit&thread.id=38198

The above link is the State Resources thread. You'll find some links to PA's and NJ's statutes, but you'll really have to dig around to find what you are looking for.

IMO, state law for NJ would apply for the contract status (e.g. when a car can be repo'd, what defines default, whether or not the car can be redeemed, etc.). But PA law could cover all of that too if PA can trump NJ. It isn't likely, but it is worth looking for language within the same statutes that permit PA to override NJ law in matters of the same. I'm not a lawyer, but look around.

Aside from the contract, PA law would determine how a car gets repo'd. Look around to see if the repo company did anything unlawful.

You've got some homework to do.

[Anonymous]

I've gone through this repo mess twice! But neither vehicle was mine. In my research I have come across something called a "right to cure" law. Some states allowe it others don't. Might be worth looking into? Just thought I would throw that out to ya. Good luck!

[Takunda1]

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@nmorton79 wrote:

I have a question that maybe someone can help with...

My sister in law live in Philly.  I have no idea who she financed her car with, but this company came and took her car because she just over 30 days late with her payment.  What happened was she sent her payment via snail mail and it was returned to sender because she didn't have the right address written on the envelope(my sister inl aw had to put her dog down, so she was going through a really rough patch..he was her baby---so she doesn't remember why she wrote what she wrote on the envelope)..so she called the Finance company to let them know why the payment was late, and they would not listen to her, and they hung up on her.   They are now demanding payment of the entire account in full (a little more than $5000) in order for her to get her car back.  My question is can they do that?  Doesn't a finance company have to wait until the account is 90 days past due?    Any answers/advice is greatly appreciated

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The reasons we ask for pymnt in full when we repo, is if the vehicle has been repossessed before, if it is a new account default, or if the unit is repoed in a state other than where the customer was supposedly living.

I am inclined to believe that your sister in law was avoiding her finance company. she would have known her unit was out for repo had she been in communication with them. futher more, remember the vehicle is the property of the bank and they can demand full payment after loan default.

Lastly every state requires a letter to be sent to the debtor letting them know of their default status. In both PA and NJ if after 18 days of sending said letter, the company has not heard from the debtor they can exercise their right to repo.

I would encourage your sis in law to get a personal loan for the 5k or use a cc and pay it off. The longer you spend trying to search for state laws etc, the car can go to Auction and be sold.

[Takunda1]

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@Anonymous wrote:
I've gone through this repo mess twice! But neither vehicle was mine. In my research I have come across something called a "right to cure" law. Some states allowe it others don't. Might be worth looking into? Just thought I would throw that out to ya. Good luck!

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Yep the right to cure law, is the letter i was referring to. After 18 days from sending the letter, further action is allowed to occur. The letter is sent to the mailing address on file. Weather the c receives it or not, doesn't matter, it just shows that the company did due diligence to try and reach out to the customer.