being sued for a repo van

It is possible if there is an outstanding balance. Maybe, the sale of the van didn't recover the full balance. Company can take actions to recover the outstanding balance

Welcome to the Forums Peanut :D Yes they can sue for the balance on a car or home if they want. Most usually don't if they don't think they can get the money or the car isn't worth suing over. When my son lived in NC, his car blew up, needed a new motor, and he let them repo it. They threatened to sue, but the car was older, he had no money, and I guess they figured out it wasn't worth the money. Keep posting, and ask questions, if you need too!...Karen

My son in law changed insurance company for a better rate and although the van was always insured somehow the broker did not notify the other of the change a tow truck backed in nevertheless and they repoed the van the payments were up to date he had proof to show the baliff in the driveway that the vehicle is insured and always ways but they insisted the van be reposessed. What can he do? They want some ridiculous amount of money to get the van out he doesnt have that kind of money. It just all seems sooo much like a scam.

Unfortunately when a lender does not have evidence of in-force insurance on file, that is a material breech of contract, and it is legal for them to repossess on those grounds.

It is up to the debtor to provide the lender with proof of insurance. In hindsight your son-in-law should have faxed the lender a copy of his insurance card or policy declarations as soon as he switched insurance companies. He also should have made sure the finance company was listed as a lienholder, so that they would receive a loss payable clause.

The lender will not risk letting that car be uninsured -- even if it's just for one day. In that one day, the car could get wrecked and they lose their collateral.

Generally when I receive an insurance cancellation notice on one of my accounts, I call the customer and I will send a certified letter telling them the car will be repossessed if I don't receive evidence of coverage by the cancel date. But if the cancel date comes and I have no proof of insurance, we will send it out for a repo.

There may be more to the story. To get a better rate, did your son-in-law opt for liability only and remove the comprehensive coverage? I find many people do that, not realizing that the financing contract does require full coverage on the vehicle -- liability only is not acceptable. Or the policy may not have met the lenders requirements -- for example the lender might require $500 deductible where the policy issued had a $1000 deductible.

Unless you can prove that the lender had proof of acceptable coverage on file, then the laws will let the repo when they deem themselves insecure.