Car Repo Question

In Alabama a car cannot be reported stolen due to late or missed payments no matter how much is owed. It is considered a civil matter.

What laws would I look that up under? We are in Texas and if I could research it I would to help my friend out. I am kinda thinking that it is a scare tactic, because even if someone locked their car in the garage or made in unable to be physically taken, al they would have to do is get a court order repo or something along those lines to force the person to give the car up...I just find it strange they would threaten to report it stolen.

in Alabama you can look under Title 13A;
Section 13A-8-3
Theft of property in the first degree.
(a) The theft of property which exceeds two thousand five hundred dollars ($2,500) in value, or property of any value taken from the person of another, constitutes theft of property in the first degree.

(b) The theft of a motor vehicle, regardless of its value, constitutes theft of property in the first degree.

(c)(1) The theft of property which involves all of the following constitutes theft of property in the first degree:

a. The theft is a common plan or scheme by one or more persons; and

b. The object of the common plan or scheme is to sell or transfer the property to another person or business that buys the property with knowledge or reasonable belief that the property is stolen; and

c. The aggregate value of the property stolen is at least one thousand dollars ($1,000) within a 180-day period.

(2) If the offense under this subsection involves two or more counties, prosecution may be commenced in any one of those counties in which the offense occurred or in which the property was disposed.

(d) Theft of property in the first degree is a Class B felony.

(Acts 1977, No. 607, p. 812, ????3202; Acts 1978, No. 770, p. 1110; Act 2003-355, p. 962, ????1; Act 2006-561, p. 1298, ????1.)

Section 13A-8-2
Theft of property - Definition.
A person commits the crime of theft of property if he or she:

(1) Knowingly obtains or exerts unauthorized control over the property of another, with intent to deprive the owner of his or her property;

(2) Knowingly obtains by deception control over the property of another, with intent to deprive the owner of his or her property;

(3) Knowingly obtains or exerts control over property in the custody of a law enforcement agency which was explicitly represented to the person by an agent of the law enforcement agency as being stolen; or

(4) Knowingly obtains or exerts unauthorized control over any donated item left on the property of a charitable organization or in a drop box or trailer, or within 30 feet of a drop box or trailer, belonging to a charitable organization.

(Acts 1977, No. 607, p. 812, ????3201; Act 2003-355, ????1; Act 2004-297, p. 449, ????1.)

I do not know about Texas though.

So basically it isn't considered theft because the item in question ( a car in this case) was not actually 'taken' as defined in the laws? I will have to scour Texas law on that.

There has to an intent to deprive the lawful owner of the property by theft or fraud.

Golden, have your friend take the car and turn it in to the lender/dealer, it is called "voluntary repossesion"; this will look better on her CR as well.

A repossession, whether voluntary or involuntary, has pretty much the same impact on your credit report. Much like a paid vs. unpaid collection.

A lender cannot report the car stolen. Technically, only the owner of the vehicle can report it stolen. The lender is not an owner, rather a lienholder. I think the cops would laugh if the lender actually tried to report it stolen. And if they actually did file a police report... well, filing a false police report is a crime in itself.

Most states follow the Uniform Comercial Code as it regards the realization and disposition of chattel (security interests). You can look up those under Article 9 here.

Nascar -- actually a voluntary is reported differently. It has a special classification which gets reported as a "voluntary surrender." Albeit it is still negative. But it shows future/potential lenders that, while they were unable to fulfill their obligations, they at least did the right thing by giving the car back; instead of making the lenders come take it by force. You're right, to a bank they wouldn't care and probably won't approve a car loan if either of those are on there. But a secondary lender, like American General or Beneficial, might be willing to overlook a voluntary surrender and approve the loan.

If I were your friend, I would call the CA back (recording the call, of course) and try catching them making the threat of reporting the car stolen. I'm no expert, but that does sound like a pretty clear violation of the FDPCA to me.

Oh yeah, it would be a violation if in fact they couldn't do what they threatened. My friend has basically just decided that she doesn't care if she gets a neg on her report, she has no intention of buying anything for a long time and will ust wait 5+ years and then offer whatever CA has the charge off a PFD. She tells me she is never buying a acar from a lot again....I guess she got burned (2 days after she bought the car the engine light came on, they 'fixed' it..but then 1 month later same problem....they said it was loose wires, she took it to another mechanic and was told the car has serious problems....bad transmission, etc. She is POed and so would rather have it on her report then break her back making the high payments...she intends to buy a car outright with tax return cash.

Your friend is now using good judgement golden. That is what I have done, my car now has well over 100,000 miles on it, but I keep it serviced regularly. I bought it from an individual well below KBB value. I will continue to drive it until the wheels falloff. I will never purchase a car from a dealer again! New or used.

I have am one month behind on my car pymnt and this month is due already can, I the state of Texas by law do they need to inform that your car will be repo if you don't make a pymnt

Hi kreyes ~ Do you have any idea of when you'll be able to make a payment? I don't believe they have to tell you that they are going to repo the vehicle. That being said, I think it would be a good idea to get in contact with the finance company if you haven't already. Be upfront about your financial situation and even ask them about your concerns with repo. Good luck :)

They don't have to inform you but generally they will. They don't want your car, they want your money and at this point in time and the economy, they will likely work with you. That's not always the case, it really depends on the lender. Have you kept in contact with them to keep them aware of your financial situation?

Some states do require written notice, whereby they have to notify you of the default, their intent to elect remedy and your right to cure before they can take further action.

I'm not sure if Texas requires cure letters. It should be in the laws if they do, which nascar has links to above.

Any chance of a remedy through the lemon law? You don't state whether this car is new or used, but it'd still be worth looking into. Your friend should also invest in half an hour of a lawyer's time. It used to be illegal for a lot to screw a buyer like that. She may have legal recourse through the courts on those grounds, as well. Beats taking a big hit on the ol' CR.

Also... The CA can't report the car as stolen because:

1 - They do not own the car, they just have a lein.

2 - They would, indeed, be filing a false report. That used to be a felony in Texas. Don't know if it still is or not.

*** I haven't lived in Texas since the 80's. That's why my advice is hedged so much. I used to be solid on this stuff, but things change over time.


Best -

Wulf

Hey Unc, missed your post on the site.

It's good to be back.

I think lemon law applies to new cars, not used and it was a used car, plus since they lied about the problem, she had it checked at a different mechanic a little over a month later when the same problem happened and they said it was 'loose wires' now they could likely argue that whatever the problem was happened after she got it.

I relayed all the good advice but I think she is going to pull an ostrich. :)

Hey, I did my bit......

can you register a car that is on a repo list?

Not sure quite what you mean ....

Are you talking about renewing the plates/sticker while the lender is looking for the car to repossess it? Yes, you can. A lender doesn't report to the secretary of state that they are "intending" on taking the car; to that effect, you can still renew the plates when they are due to expire.

I have a friend that has a brand new car up for repo. I was wondering can you still register a car if it has no plates and it is up for repo? Can the finacial institution (lienholder) block your registration? The reason I ask is because my friend whose car is up for repo wants me to buy it because it was his wifes who he recently divorced and it is under his credit. He doesnt need it and said I can buy it for REALLY cheap but the lienholder will repo if they can find it. Is there any risk here? I just dont want to drive it without plates.

Don't do it, it's illegal (not really for you, but for your friend).

1) The lienholder has the title to the vehicle. As long as they hold the title, they can repossess it whenever they find it. YOU also will NEVER be able to register the car in your name without the title. In that sense, yes, the lienholder will block your registration, because they own the car until it's paid off.

2) It is considered fraud and/or theft by deception for a person to convey interest in property that he has no rights to convey interest in. Meaning it's illegal for your friend to sell a car that he doesn't own. They bank will go after him on those grounds if/when they find out he tried to sell the car while they still have the title.

3) Conversion of mortgaged property can also carry a separate criminal charge.

In the end, if you "buy" the car, expect it to be taken away as soon as the bank finds it.

i'M BEHIND 5 MTHS CAN THE FINANCE COMP REPORT THE CAR STOLEN I'M IN HOUSTON TEXAS

My vehicle went missing I was 3 months behind on my payments I automatically assumed the finance company repossed it now a private investigator has informed me that they didnt repo it, what should I do?

Do you remember your license plate number? Call the DMV and ask them if the plates have been turned in. Also if you have any other information you can go by that also.

You may also want to call the police department and see what they have to say.

I have a car that I am paying too much for, I'm upside down like about 10k and my interest is too high, I'm just basically throwing my money away! I was going to let my husband get me another car thru his bank. Is this a smart move ?

QuinN- no they cant report it stolen, but i garantee they are looking for it.

Lakaiguy949
i wouldnt give somone money for a car that is out for repo, most companies have skip tracers that are really good and they can find a car even if it is in a diffrent state. my suggestion would be call the finance company and tell them you want a finders fee and you will tell them where the car is, if its far enough past due and the balance is decent. they will do it. but dont buy a car from somone who screwed off the finance company, seriously sooner or later you will go into the grocery store or the local bar and when you come out the car will be gone. might be a week or two years but sooner or later it will happen.

I have a car that I am paying too much for, I'm upside down like about 10k and my interest is too high, I'm just basically throwing my money away! I was going to let my husband get me another car thru his bank. Is this a smart move ?

Moni J- it depends on the situation. chances are if you are that far upside down and intrest is that high you are financed with a sub prime lender. alot of people that are with a sub prime lender is because their credit isnt good enough to get the loan picked up by a prime lender. most people who agree to a loan with high intrest use it as a second chance loan to help rebuild their credit. it sucks but basically that is the intrest rate the person has earned. so if you dont care about your credit, as far as having a voluntary or involuntary repo on it for the next 7 years its not a bad idea. but also what you have to understand when you voluntary surrender a car the finance company will take it to an auction where people buy it for pennies on the dollar, after the car is sold and the company applies the money to your balance, whatever is left over the finance company will hold you responsible for. and chances are if you are already 10k upside down on it you will still owe alot of money after the car is sold. so to answer your question, short term sure its smart because the payments on your new car will probably be lower, long term its not very smart because it ruins your credit and you have a deficiency balance following you around for years.

I live in IL and my car is at school with me in TN. The repo man wants to take my car and said he is waiting on a tow truck. I just found out my dad hasn't been making my payments. Do I have to surrender my vehicle to this stranger? What rights do I have?

i was wondering my friend has been late on her payments for 3 months she have a outstanding balance that she is not going to pay.they are looking for her car which they are trying to repo it. come to find out the sent her account to the collection agency. can they still repo her car

Yes they can

Sure. They still have a lien on it.

If you buy a car at a buy here pay here place and take it out of state and you are late on the payments can the place put a warrent out for your arrest for a stolen car

No, probably not. But they could send a tow truck out to come repo it.

my bank has threatened to report my car stolen for a debt of 4800 dollars. the amount due is the insurance they applied to my account when they said i didnt have insurance, when i have proved to them on many occasions that i do and have had current full coverage insurance through jan 13 09, i am tryin to negotiate some kind of payment but they gave me untill friday to pay. any advice? should i just pay and work out the refund when they get the insureance straight?

A) They generally could not report it stolen. If they tried to file a police report claiming they "considered the car stolen because you were past-due on payments," the cops would laugh in their face. I'm not sure that under any circumstances would the cops take a police report for a stolen car from the bank -- that is because you are the legal owner, the bank is only a lienholder. That would be like the bank trying to say "he stole his own car."

B) There are going to be state laws that govern when and how they can place their own insurance on the collateral. Generally, they can only place insurance when the car is actually uninsured, or to the extent that you did not provide them with evidence of insurance upon their request.

For example, when I get a cancellation notice from the insurance company, I send a certified letter to the customer telling them that we need proof of insurance by XX/XX/XXXX, and if we don't receive proof of insurance, we will place our own and charge them for it. After placement of our insurance, if the customer provides proof of their own, we will cancel our policy; but the customer is still responsible for the premiums from the date of placement through cancellation -- because we had provided ample notice and request, and the customer did not provide proof within the time required.

What you should do is gather all of your proof of insurance (insurance cards, endorsements, policy declarations, etc), and send them certified, along with a letter stating that: 1) you had insurance coverage at all times while they had placed their own insurance; and 2) their policy should have been flat-cancelled since your insurance had never, in fact, lapsed. You should also request an accounting of the balance, specifically showing 1) any insurance premiums they charged, and 2) any credits for the refund of unearned premiums upon cancellation. In the meantime, you should also tell them that until the matter is resolved and you have had a chance to review their calculation, you dispute the amount they claim owed. You could also CC the Dept of Financial Institutions just so they mind their P's and Q's.

You'll want to check your state laws but they'd have to prove your friend actually stole the car, meaning not just preventing them from recovering it, but intentionally evading and hiding from the company that actually owns the car.

What I mean by that is, when my car got repo'd I found out repo guys have a lot of restrictions, at least in my state at the time (california). They cannot go onto your property if you tell them not to, they can't break into your garage, etc. If you park the car in so it can't be moved or find a way to lock the wheels there's nothing they can do.

That said, your friend's best bet if he or she doesn't plan on paying for the car, in my opinion, is voluntary reposession because the fees charged for repossession are pretty expensive and she will end up paying for them in the end.

did u find out the law in Texas can they report the car stolen?

this is a pretty old thread.. hang tight, i am sure someone will be around :)