How to Use this Resource

We hope the articles below help you understand your rights as a consumer. You can scroll through the titles, or sort by Practice Area or Topic. You can also use the search feature to locate information by keyword.

Flitter Milz represents people with a variety of problems involving consumer credit and collections. If you have a particular question or believe your consumer rights have been violated, Contact Us for a no cost consultation.

Car Repossession

Do I Still Owe Money After My Car was Repossessed?

If you’re going through financial hardship or a difficult life event, it can be challenging to keep up with your car loan payments. Your vehicle is collateral, or your pledge to a lender that you’ll repay the loan. If you default on the terms of your loan agreement, the lender may choose to repossess your vehicle. They’re not required to contact you before the repossession.

If your car was recently repossessed, you may be wondering what happens next. Do you still owe the payments that you missed on your loan? Do you still owe the full balance after your car is sold?

Continue reading Do I Still Owe Money After My Car was Repossessed? →

How Do I Get My Repossessed Car Back in Pennsylvania?

Vehicle repossession is inconvenient and worrisome, but it is possible to get your car back.  After the repossession agent comes, the lender is to send the borrower a repossession notice, frequently called a Notice of Intent to Sell Property.  This notice will inform the borrower of terms to get the vehicle back.  Sometimes the lender will demand a full loan payoff, while other times, past due payments may be accepted.  This notice informs the borrower of the vehicle’s location, the cost of repossession and any storage charges.  The borrower usually has 30 days to arrange for retrieval of any personal property from the repo lot.

Continue reading How Do I Get My Repossessed Car Back in Pennsylvania? →

How do I Get a Better Auto Loan?

Shopping for a new vehicle can be overwhelming on its own without even considering the auto loan application process. But if you don’t take the time to research and compare auto loans, you may end up with a bad deal.

Review your Credit Reports

Y

Before you begin to shop around for the best deal, check your credit report. Your overall credit will give you a general idea of what interest rates to expect. You should also consider your budget and how much you can afford to spend each month on vehicle loan payments. It’s important to make a purchase that you can afford. If you fall behind on loan payments, your vehicle may be at risk for repossession. A vehicle repossession negatively affects your credit for up to seven years. You should also keep in mind that shorter term loans will mean that you pay higher monthly payments, but less over the course of the loan.

Evaluate your credit score

When you apply for an auto loan, your credit score will take a slight hit. The credit bureaus will treat several loan applications made within a short time frame as a single application. If you were to receive credit denials from several potential lenders, your credit report could be impacted negatively and your credit score may drop.

Seek Legal Advice

Flitter Milz is a consumer protection law firm that represents victims of vehicle repossession.  If a borrower defaults on a bad auto loan and the vehicle is repossessed, Flitter Milz will evaluate whether the lender violated the borrower’s consumer rights.  If your vehicle has been repossessed in the past six years, Contact Us for a free evaluation.

How Your Credit Affects Vehicle Financing

Before applying for any new line of credit, it’s good practice to check your credit report and credit score. Auto loans are no exception. A credit check will give you a good idea of where you stand and what type of interest rates you can expect. It’s also important that you verify that all of your information is correct and dispute any inaccuracies that may be bringing down your score.

However, credit scores that fall in the non-prime (620-679) and subprime (550-619) ranges may not necessarily indicate that you aren’t eligible for a reasonable interest rate. Lenders often use different tiers according to their own business needs to assess creditworthiness.

Lenders also frequently place more weight on credit history that is specific to auto loans. Timely auto loan payments in your credit history are more important than whether or not you make credit card payments on time. Always shop around to compare rates before signing an auto loan agreement.

Seek Legal Advice

Flitter Milz is a consumer protection law firm that pursues matters against lenders, debt collectors and the credit bureaus.  If a lender wrongfully repossesses a vehicle, a debt collector is abusive or the credit bureaus report information inaccurately, the consumer may have a lawsuit to pursue. For a no cost legal evaluation, Contact Us .

How to Finance a Vehicle with Bad Credit

Purchasing a new vehicle is a major decision, especially when you need to secure a loan in order to do so. Not only are you shopping for a car, you’re also shopping for the best interest rate and loan agreement terms. This process can be even more difficult if you have poor credit.

Check your credit before the purchase

A negative credit history can make it more difficult to find an agreement with reasonable interest rates and can also make it more challenging to get your application approved. It’s important to prepare and research ahead of time before you make a decision to ensure that you choose the best option for your situation. You may run the risk of a vehicle repossession when the loan agreement terms present challenges to your finances.

The vehicle is collateral to the lender

The vehicle is considered collateral in a loan agreement. As the borrower pledges repayment of the loan, collateral is a form of security for the lender. If a borrower fails to make payments under the loan agreement, the lender has the right to repossess the vehicle. A repossession will further harm your credit and negatively impact your history for up to seven and a half years.

Shop for the loan that is right for you.

When you need to secure a loan for the purchase of your new vehicle, take steps to make sure you get the loan that is right for you.  If you  enter a loan agreement with unfavorable terms, you may not be able to make loan payments in full and on time.  When the terms of the loan have been broken, the lender may take steps to repossess your vehicle.

Seek Legal Advice

Flitter Milz is knowledgeable about the laws governing repossession of cars, trucks, motorcycles, boats and RVs.  If your vehicle has been repossessed, Contact Us.  We will review the details of your case at no cost, and evaluate whether your consumer rights were violated.

My Car Was Repossessed. Where Do I Go From Here?

Repossessing a Vehicle

Unexpected life events, such as a job loos, divorce, illness, or death in the family, may have sever impact on meeting financial obligations. When a vehicle is financed through a bank or credit union, the lender has the right to repossess the car if the borrower has defaulted on the terms of the loan agreement. For example, if you don’t make timely payments or if insurance lapses, the lender can repossess the car. The lender is not required to notify the borrower in advance of the repossession.

C

Usually, the lender will arrange for a repossession agent to locate the car and seize it. The repossession truck could come to your home, place of employment, or even a shopping center or restaurant where the car is parked. When seizing a vehicle, the repo agent may not “breach the peace”.  This means they can not use physical force, threaten force, or remove your car from a secured area without your permission.

How can I get my car back?

Letters related to repossessionThe lender will send a written Notice of Repossession, to the consumer AFTER the vehicle has been taken. This letter, sometimes called a Notice of Intent to Sell Property, will indicate terms to retrieve the vehicle within a specific period of time. If the borrower is not able to meet those terms, the lender will arrange to sell the vehicle at an auction or private sale. Once the car is sold, the lender will send a second letter, called a Deficiency Notice, to the consumer. This letter will detail the selling price of the car, any repossession and storage fees, and the total balance owed to satisfy the loan.

Do I have rights even though I defaulted on my loan?

If your car, truck, motorcycle, boat, or RV has been repossessed, a qualified consumer protection attorney can evaluate whether your rights have been violated. It will be important for you to provide a copy of your signed Retail Installment Sales Contract or loan agreement, along with any repossession correspondence from the lender to the attorney.

My loan agreement is in my car? How can I get a copy?   

Consumers will often keep their loan agreement in their car, which presents a problem if the vehicle is repossessed. In that situation, there are three ways to obtain a copy of the loan agreement.

1. Contact the lender: Write, call, email, or visit a local branch.

For example: If you had a loan with Peoples Security Bank & Trust and lived near their Scranton, PA branch, you could contact the bank office directly to request a complete copy of your loan agreement. You may need to get the bank’s contact information from a car loan statement, phone book listing, or by searching online. You will find their address, branch phone number, and email address.

Once you reach a bank representative in the repossession department, request they provide you with a complete copy of your loan agreement..

2. Visit the repo lot and obtain all of your personal belongings.

3. Contact the car dealership where the vehicle was purchased. The dealership often keeps copies of all loan agreements. You could visit the dealership to obtain a copy, or the dealership may be able to send a copy by fax, email, or through the US Mail.

Remember, when requesting a copy of your loan agreement, be sure to obtain a complete copy, front and back, and make certain that the copy is legible.

Seek Legal Help

Whether you fell behind on payments or not, borrowers have legal rights when the lender or repo agent has wrongfully repossessed the vehicle.  Flitter Milz is a nationally recognized consumer protection law firm that represents consumers who have had a vehicle wrongfully repossessed.  Contact Us for a no cost legal review.

 

Servicemembers Civil Relief Act (SCRA)

Protection from Repossession

The Servicemembers Civil Relief Act (SCRA) provides special protections for active service members that have defaulted on car loan payments.  To qualify, servicemembers must have signed the loan agreement, and paid at least the deposit or first installment payment, before entering military service. To repossess a vehicle, the lender must obtain a court order.

Reasons for Repossession

Vehicle repossessions occur for a number of reasons. Most often, a vehicle is repossessed due to missed payments or the lapse of insurance. When a car is repossessed, lenders need to follow the law, whether payments were missed or not. If the lender overlooks the law, the servicemember may bring a lawsuit against the lender.

Requirements AFTER Repossession

After a vehicle has been repossessed, the lender is required to send proper notices to the borrower. Shortly after the repossession, the lender will send a letter called a Notice of Intent to Sell Property, which confirms the repossession occurred and details terms for to retrieve the vehicle. If the borrower is not able to meet the terms, the lender may choose to sell the vehicle at an auction or private sale. Once the sale has taken place, the lender will send a second letter called a Deficiency Notice, which informs the borrower of the sale price of the vehicle and any remaining balance due.  If the borrower is not notified properly, there may be grounds to file a lawsuit against the lender.

Credit Reporting and Car Repossession

If a servicemember’s vehicle has been repossessed, he or she may face loss or denial of a security clearance, or other types of punishment based on mismanagement of their finances.  In addition, credit reports may list delinquencies or the repossession and lower credit scores, which make it difficult to obtain a new loan.

All consumers are entitled to receive one free credit report every twelve months directly from Transunion, Experian and Equifax.  Check your credit reports , and make sure the information is accurate.

Seek Legal Assistance

Servicemembers that have fallen behind on payments for auto loans and are facing repossession should seek the advice from a qualified consumer protection attorney to advise on their consumer rights.

Flitter Milz is a nationally recognized consumer protection law firm who knows the laws to protect borrowers from wrongful repossession and inaccurate credit reporting. Contact us for a no cost consultation.

Pictured above:  Attorneys Cary Flitter (center), Andy Milz (left), Jody López-Jacobs (right).

What are Creditors Able to Repossess?

When Can a Lender Repossess?

It may seem as if a creditor has all the power in a loan agreement, but there are limitations as to what a creditor can and can’t take from you if you fall behind on loan payments. In some loan agreements, a possession or property is listed as collateral. Collateral means that the borrower has pledged something to serve as protection for the lender in the event that there is a default.  For example, in a case where the borrower fails to make payments in full and on time under the agreement’s terms, the collateral can be repossesed.

Vehicles – Cars, Trucks, Motorcycles, RVs

Vehicles are considered collateral in auto loan agreements. If the borrower falls behind on payments, the lender maintains the right to repossess the vehicle, usually without any prior notice. If the vehicle is sold for less than the remaining loan balance, the borrower may still be responsible for paying the outstanding amount.

Homes

The same is true for homes. If a borrower doesn’t make timely mortgage payments, the lender can repossess the home. This is known as foreclosure. The home is then typically sold as a means of recovering as much of the remaining loan balance as possible.

Rent-to-Own Items

Rent-to-own items can also be repossessed. This could include items like furniture or appliances that were rented with the option of buying.

What Can’t Lenders Repossess?

Lenders can’t repossess property that isn’t specifically listed as collateral in the terms of the loan agreement. Credit card purchases also cannot be repossessed if you fall behind on payments. And even if some property is listed as collateral in the agreement, a contract can be void if it doesn’t comply with state legal requirements. It’s also important to keep in mind that a creditor can sue you in court to recover money that you owe if the loan agreement doesn’t list collateral.

Seek Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents victims of improper vehicle repossessions. If you think your consumer rights may have been violated by the lender or repo agent, contact us for a no cost consultation — whether or not you fell behind on your auto loan payments.

 

How a Voluntary Surrender Impacts your Credit

If you’re behind on your car loan payments, it’s possible that your vehicle will be repossessed by the lender. Your vehicle is considered collateral under the terms of the loan agreement, so the lender has the right to take back the car or truck if there is a lapse in payments or terms of the agreement are broken.

If you’re suffering a financial hardship, often borrowers that have fallen behind on payments may consider whether to voluntarily surrender their vehicle instead of the embarrassment of a repo-man coming to their door.  Either way, the repossession of a vehicle may impact your credit report negatively and make it difficult to get credit approval on an auto loan in the future.

What to Do Before Repossession

First and foremost, if there’s a chance that your vehicle will be repossessed, you should take the following actions in preparation:

  • Remove all purchase and loan documents from the vehicle.
  • Remove all personal belongings from the vehicle.
  • Note the current odometer mileage.
  • Take photographs of the vehicle’s interior and exterior.
  • Request that the lender provide you with a written loan payment history.
  • Request that the lender provide you with a payoff figure.
  • Do not hide or conceal the vehicle to avoid a repossession.

This will ensure that you have all the information you need along with your personal belongings should a repossession take place.

How a Voluntary Surrender and Repossession Affect Your Credit

Many consumers who anticipate a repossession wonder if the consequences will be less negative if they voluntarily surrender the vehicle to the lender. The only significant difference between the two is the way they appear on your credit report; a voluntary surrender will be listed as such, but the negative effect will be about the same as a repossession. It’s possible, however, that the lender will be more willing to enter a loan agreement with you in the future if you voluntarily surrender the vehicle.

A repossession can stay on your credit report for up to seven and a half years. It’s a negative listing that lowers your credit score and it can make it more difficult to secure a new auto loan or line of credit.

Discuss Your Options with Your Lender

If you are having difficulty making payments, contact your lender as soon as possible. You may be able to avoid repossession by deferring payments to the end of the loan and prevent your credit from taking a further hit.

Seek Legal Help

Whether you have fallen behind on your car payments or not, there are legal protections for borrowers from lenders and repo agents that wrongfully repossess vehicles.  Learn more about your rights and contact Flitter Milz, a nationally recognized consumer protection law firm.