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The lender may also repossess the vehicle if you fail to maintain insurance on the vehicle
as set forth in your loan agreement.
Once a vehicle has been repossessed by the lender, you do not have the automatic right to
get the vehicle back just by paying the past-due payments. If you are less than fifteen (15) days
past due on your loan, you have a period of fifteen (15) days in which to pay the full amount
owing under the loan plus any default charges which may apply under your contract with the
lender. If you were more than fifteen (15) days late in your payment, you must pay the full
amount due under the loan, any applicable default charges, the costs of repossessing the vehicle
and storing the vehicle in order to have the vehicle returned to you.
In some cases, the lender may agree to reinstate the loan without paying the full amount
due. Legally, the lender does not have to reinstate the loan. If your vehicle is repossessed, you
should immediately call the lender to discuss the status of your loan and to see whether or not the
lender is agreeable to make arrangements to reinstate the loan and return the vehicle to you.
Once a vehicle is repossessed, the lender must send you a notice advising you of your rights to
redeem the vehicle within fifteen (15) days. If you do not redeem the vehicle within the fifteen
(15) day period described in the notice, the lender has the right to sell the vehicle at a public or
private sale. Once the vehicle is sold by the lender, the amount the lender receives at the sale
must be applied to the amount you own on the loan. If the lender does not receive enough from
the sale to cover the amount you owe under the loan plus default charges, repossession charges,
storage costs and costs of the sale, the lender may hold you liable for the difference.
Once the vehicle is sold after the repossession, the borrower does have the right to receive
a statement of account which lists all the amount due to the lender and the amount received for
the vehicle at sale. The borrower must request this statement within one (1) year of the
termination of the contract.
If you need an attorney and don't have one, the Lawyer Referral and Information Service can help.
Call Us Monday - Friday from 8:30 AM - Noon and 1:15 PM - 3:00 PM
at (814) 459-4411. |
