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Legal Issues In Repossession
from:There are many different legal issues which individuals that have repossession businesses or individuals that are facing the possibility of having something repossessed need to be aware of. Each state has individual and different repossession laws, so it is important to be aware of what can and cannot happen with regards to repossession.
Basically any type of repossession occurs when someone owes money on a tangible item and the borrower has defaulted on the payment. These types of repossessions can occur because the borrower actually has a form of a secured loan with the item itself being used as collateral. Since this is a form of a loan, the purchaser who is also the borrower, really is not the owner of the item until the loan for the item is paid in full. The lender actually, in legal terms, continues to be the owner until the note is paid off in full. This allows the lender (with right of ownership) to take the property back without having to go through the court to get a judgment against the party with the right of possession.
Usually most companies that offer equipment, vehicles and other large items don't actually do the repossession, rather they hire a specialized company to go out and collect the property. Even in states where repossessions can be done through these companies, there are still legal precedents that limit or structure the ways and means that the company can use to get the property back. In most states the following legal issues are in place regarding the repossession process:
• The borrower must be made aware that the loan is outstanding and must be informed in the original loan agreement that default on the loan of a specific number of payments will result in repossession action by the lender.
• The individuals completing the repossession cannot commit any illegal acts or cause a breach of the peace in regards to obtaining the item. They cannot break into a house, garage or property that is secured to obtain the item.
• The company or agent cannot damage anything to obtain the item. This means they cannot pull items out of a house and put a hole in the wall or the kitchen cabinets or otherwise damage the property while removing a stove.
• The creditor or the repossession agents cannot threaten to or actually remove any property other than the item you owe money on. This means that they cannot, for example, take a boat that may be on a trailer that is attached to a truck that is being repossessed.
In the United States if a repossession company breaches any of these laws the repossession can be overturned through a court of law and the individual can also be awarded damages.
Auto Repossession Business Specific links
Auto Repossession Business News
Car dealer arrested for auto theft - Catskill Daily Mail
 Catskill Daily Mail | Car dealer arrested for auto theft Catskill Daily Mail Heydari is accused of having a vehicle repossessed that he never owned or sold. He had hired a general contractor to do work at his business and after a dispute with the contractor, hired a repossession agent to repossess the contractor's truck. |
Repo worker got illegal access to Minnesotans' motor vehicle records, state says - Pioneer Press
 KAALtv.com | Repo worker got illegal access to Minnesotans' motor vehicle records, state says Pioneer Press By Mara H. Gottfried and Sarah Horner An employee at a car dealership who was authorized to view Minnesotans' vehicle data allegedly shared his login information with a friend working at a vehicle repossession company, leading to unlawful data access ... Audit: Car Dealer Employee Gives Friend Access To 3700 MN Vehicle Records |
On the road with the Repo Man - KXLY Spokane
On the road with the Repo Man KXLY Spokane One local company says the repossession business has doubled in the past five years because people can't make their car payments. It's a dangerous job with a big return that's reaping the benefits of a struggling economy. Every week, 150 repossessed ... |
3 California bills to rein in Buy Here Pay Here dealers advance - Los Angeles Times
3 California bills to rein in Buy Here Pay Here dealers advance Los Angeles Times "Instead, the exact opposite happens, and they are left with a car that breaks down right away and needs repairs that they can't afford." A repossession stays on a buyer's credit record for seven years, making it difficult to get a job or rent an ... |
Coeymans man charged with grand larceny - WNYT
 WNYT | Coeymans man charged with grand larceny WNYT Police said, 28-year-old Darius Heydari, owner of A-1 Auto on State Route 9W in Ravena, hired a contractor to do work at his business. After having an argument with the contractor, Heydari contacted a repossession agent to repossess the contractor's ... Man has contractor's truck repossessed illegally |