Repossessed car

Starlight,
I 'split' your post away from the topic you had originally posted on, in order to get your situation on a topic of its own...

Reposession laws vary from state to state. Some states do require a lender to give what's called a "cure letter" to the debtor, which provides a notice of default and gives debtor the right to cure said default before they can repossess the chattel.

HOWEVER, most states do not require a cure letter. In states that do not require a notice of default be given to the debtor, it is legal to repossess the collateral at any time (without prior notice) that the account has defaulted. Many situations can put you in default -- late payments, lack of insurance on the vehicle, the vehicle becoming impounded, excessive damage to the vehicle, or the lender otherwise deeming themselves insecure -- are all valid reasons for the lender to issue a repossession order.

Now, if you only have a year left (assuming it was a 5-year contract), then you have made at least 75% of your payments. Most states do have special provisions if you have made a certain % of your total payments. For example, in Illinois if you have made at least 30% of your payments prior to reposession, then the lender has to give you the option to pay only what is past-due and reinstate the note (ie they can't demand the full balance in order to get your car back).

They will be required to send you a notice, now that they have taken your car, telling you what you must to do get your car back. Generally, you would have to pay 1) the past-due amounts, 2) costs of reposession, and 3) provide valid proof of insurance and then you can get your car back.

And NO, they will not be able to take your other car, since the security interest/agreement on this loan only applies to this collateral and to nothing else.

A while back we had one of our cars repoed and were given 10 days to pay the past due before we lost it for good. Check with your lender and see how long you have to get caught up so you can get your car back.

Also if you have a problem with a payment after that, check to see if they can give you at least one month deferment. You may still have to pay the interest, but that is a lot less than the full payment.

2nband is right sbout the redemtpion period, which I forgot to mention earlier. Your state laws will give you a certain number of days to redeem the vehicle. I have always seen a 21-30 day window where they have to give you to make the payment -- 10 days seems a bit short. In any case, after the redemption period, the lender will be able to sell the car.

The deferment/extension is a good idea to get by without making a full payment for a month or two, but they do usually make you pay the interest still. One thing about your bank is they may have policies on when you can do a deferment ... When I got my car loan about 4 years ago, I had to replace my clutch about 6 months later (not covered under the warranty), so I ended up being 30 days late with my car payment that month. Then, about 6 months later I had more problems and called my bank about doing an extension. They said I couldn't because I had been 30 days late within the previous year, that I would have to make a year of on-time payments and then they would do an extension for me. So, it all depends on your bank's policies.

The main thing is, in the future, keep good communication with the lender. Even if you are going to be late with a payment -- call them before they call you. Let them know what is going on, and most times they will cut you some slack, for a little while at least. The main thing is 1) Don't make promises you can't keep (ie telling them you'll mail the payment next Friday, and then don't), and 2) Don't ignore their phone calls. When they get worried, that's when they start looking for the car.

Car repossed late 51 days. Was told that a warrent had been issed so I turned the car in. Now find out that was a lie and they are giving me only 7 days to pay. What are my legal rights in GA? Do I not have 30 days?