Understanding Consumer Law

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

How to Avoid a Bank Repossession After Purchasing a Car

The decision to purchase a new car is exciting. Vehicles provide independence and mobility. Whether you’re purchasing a car for the first time or not, having the means to drive is liberating. You can go anywhere, whenever you like.

Buying a vehicle that suits your needs and your budget can be a challenge. Often, the vehicle that we would like to drive may not be the vehicle we can afford. Before going to the dealership, take some time to shop around for a vehicle as well as the credit you’ll use to purchase the vehicle. You want to make a purchase with financial terms that are right for you.

Auto Loan Default

Bank repos occur when the borrower does not meet the terms of a signed loan agreement. If the borrower defaults, the bank, credit union, or lending institution can take the vehicle back at any time. Repossessions often take place when a borrower:

Car Repossession

Once your vehicle has been repossessed, the bank is required to provide you with a notice detailing terms to retrieve your vehicle. If you are not able to meet those terms, the bank may sell your vehicle at a private sale or auction.

After the sale, the bank will send a notice to confirm the amount of the sale. That amount will be deducted from any balance owed on the loan. If there is a deficient balance, the bank will inform the borrower of that amount and take steps to collect.

Avoid Bank Repo

Always shop around and consider your options before your buy a new vehicle. Be sure to choose a car that you’re confident you can afford. Get all the details of your car loan agreement in writing and ensure that you’re aware of the terms of the agreement. Always pay in full and on time to avoid default.

If you think your vehicle may be repossessed, follow these steps.

Seek Legal Help

Flitter Milz is knowledgeable about the laws governing repossessions 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.

How to Find Out If Your Auto Loan Account is Current

A key aspect of financial wellness is to avoid spending above your means. It may be tempting to apply for an auto loan to buy a more expensive vehicle, but keep in mind that falling behind on payments not only harms your credit, but also leaves your vehicle at risk for repossession.

It’s important to stay up to date on all payments. Be sure to pay in full and on time each month. Remember, if you are late or miss a couple payments there may be additional interest or late fees owed to bring your account current. Until these fees are paid, your account is still overdue, even if you pay your next payment in full and on time.

Four steps to ensure your account is current

1) Request Payment History

Contact the lender and ask for a complete loan payment history. You may be able to access this information online, otherwise, you can write a letter to the lender.

The lender’s records will show the amount of each payment you have made, the date on which they were applied to the account, and any additional charges, such as interest or late fees. Review the records to ensure everything appears accurate. Address any overdue payments and late fees as soon as possible. If your account is delinquent, the lender can repossess the vehicle without prior notice.

2) Keep a Record of Auto Loan Payment History

Moving forward, keep a detailed record of your auto loan payments. Your personal records should include the payment date, amount, method of payment, and the date it was applied to the account. Detailed records will keep you on track with payments to ensure you don’t fall behind, and are also useful in the event that the lender makes an error.

3) What to Do if You Fall Behind on Payments

It’s common to experience financial hardship, whether it’s due to job loss, divorce, health issues, or a death in the family. If you’re having difficulty making payments in full and on time, contact your lender. The lender may be willing to defer your payments and apply them to the end of the loan.

Be sure to request the lender provide you with a letter that confirms any changes to the original loan agreement. For example, if the lender agrees to defer payments to the end of the loan, additional costs associated with the deferment will have to be paid to satisfy the loan. It’s important to have a record of any changes in terms and any additional charges you may endure due to deferment.

4) Is your Vehicle at Risk of Repossession

If you determine that your account is past due and think your vehicle may be repossessed, follow these steps and contact your lender. It may still be possible to avoid repossession if you’re able to pay off some of the overdue balance.

Seek Legal Advice

Contact Flitter Milz, an experienced consumer protection law firm, for a no cost consultation to discuss your rights if you believe your vehicle may be repossessed.

 

How to Get Personal Belongings Back After a Vehicle Repossession

A car repossession can make you feel powerless, as if you don’t have any rights regarding your property. The consequences of a repossession are difficult enough without having to worry about the personal items that were in your vehicle at the time it was taken.

Protect Your Personal Items BEFORE the
Repossession

If you suspect that your car may be repossessed, remove all personal items from the vehicle, glove box, and trunk. This includes:

  • All car purchase and loan documents. Keep these documents in a safe place.
  • Work-related items, such as briefcases, laptops, or tools.
  • Family-related items, such as personal mail, car seats, school work, or clothing.

Follow these steps prior to the repossession.

When Can a Lender Repossess a Vehicle?

When you sign a contract to finance a vehicle, the car is considered collateral. This means that the bank or credit union has the right to take back the vehicle if the borrower defaults on the terms of the contract.

Terms for default include missed payments, partial payments, or late payments, or lapse in auto insurance for unpaid premiums. Specific terms for default are listed in the loan agreement that you signed.

How to Get Personal Items Back AFTER a Repossession

Notice of Intent to Sell Property
After a vehicle has been repossessed, the lender will send a letter to the borrower that details terms to retrieve the vehicle. This letter, frequently called a Notice of Intent to Sell Property, states the location of the repossessed car so that the borrower knows who to contact to reclaim any personal items.

Retrieve Personal Property
You may be unable to retrieve attached fixtures, such as a stereo or rims, but any loose items are yours to claim. The borrower typically has 30 days to get their possessions from the car.

Deficiency Notice
Once the vehicle is sold, the lender is to send a letter to the borrower which confirms the selling price and then a calculation of any remaining balance claimed to be owed to satisfy the loan.

Damage to Your Personal Property

When the repo agent arrives to take your vehicle, you may request to remove your personal items. Car repossession laws prohibit repo agents from damaging your personal property.

If your property is damaged, get the name of the repo agent, repossession company name, phone number, and license plate number of the repo truck. Inform the lender of any damage caused by the repo agent.  As well, contact the police to file a report. Be sure to take photographs of the damaged property, and gather witness statements.

Seek Legal Advice 

Flitter Milz is knowledgeable about the laws governing the repossession of cars, trucks, motorcycles, boats and RVs.  If your vehicle has been repossessed, Contact Us for a NO COST review and evaluation of whether your consumer rights have been violated.

 

Don’t Get Caught in a Car Loan You Can’t Afford

It may seem easier to get a loan for the car of your dreams these days, but more people are falling behind on payments and becoming delinquent on their loans. When it becomes easier to get an auto loan, auto loan delinquencies are more common.

The rise in auto loan delinquencies

The rise in delinquencies comes at a time when unemployment is low and borrowers typically should be able to make their payments. However, lenders may have loosened their credit standards and let borrowers take on more debt than they can afford.

Always read the information in any loan application to make sure that the information is accurate! Consumers should pay attention to whether their income is stated correctly on the auto loan application. If you find errors on your application, do not proceed with the purchase.

My car was repossessed. Now what?

Once delinquent, the lender may be able to repossess the vehicle without warning. If you think your vehicle may be repossessed, we recommend that you remove all car purchase and loan documents, and all personal items from the vehicle.

Once the vehicle has been repossessed, the lender will provide you with a notice detailing the terms for you to get your car back and where to retrieve your personal possessions from the vehicle. Follow these steps.

Does your credit report list the repossession inaccurately?

Check your credit report to see whether your loan payments were reported accurately. Consumers are permitted to receive one free credit report from each bureau within a twelve month period.

If the lender has reported your payment history inaccurately, send written disputes to the credit bureau.

Be sure to provide supporting documentation that shows why the information is not listed accurately on your credit report. The bureaus have 30 days to respond to your dispute. If the errors remain on your report, seek an experienced law firm to evaluate your credit reports and correspondence with the credit bureaus for a potential violation of your consumer rights.

Seek Qualified Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that represents consumers who have had a vehicle repossessed. Contact us for a no cost legal review to determine whether your consumer rights have been violated.

 

Police Involvement in Car Repossessions

In most states, repossession agents have to inform the local police department of their intent to seize a vehicle before the repossession takes place.

During the vehicle repossession, the police may be contacted by the borrower or the repo agent to come to the scene. Whether it is the borrower or repo agent who contacts the police, the officer must follow specific guidelines so he or she doesn’t violate the borrower’s constitutional rights.

What is the Role of the Police During a Vehicle Repossession?

The police are there to help keep the peace. If the situation becomes volatile, they should assist in diffusing the confrontation between the repo agent and the borrower.

The police are there to protect you and keep anyone from being harmed. It is not the police’s role to assist the repo-man in taking your car.

What Type of Police Involvement is Unacceptable?

The police should not assist or enable the repossession.

Unless the lender has taken the unusual step of obtaining a court order, the police should not order you to turn over your keys or to “step aside” and let the repo man take your vehicle.

If the police threaten you with arrest or command you to turn over the vehicle, they may have crossed the line from keeping the peace to breaching the peace. This could violate your constitutional rights.

While you obviously may need to yield to the command of an armed law enforcement officer, make it clear that you protest the repossession.

I Think the Police Crossed the Line. What Can I Do?

You may be entitled to bring a lawsuit against the police department, the repossession company, and the lender for wrongful vehicle repossession.

Gather statements from witnesses, if any, and obtain the police report that details the incident. Take a video of your interaction with the repo agent and/or police officers.  Photographs the scene, including your vehicle and any damaged property. Write a statement, including the date and time, of what happened.

Seek Qualified Legal Help

Flitter Milz is a nationally recognized consumer protection law firm that evaluates matters for consumers who have had a vehicle repossessed.  There is no cost for the legal review. Contact Us today.  

Was Your Car Repossessed? Follow These Steps.

Whether you are behind on payments or not, the lender must follow a number of rules before and after a car is repossessed. These rules detail how and when they can initiate car repossession, what kind of notices must be given, and how any auction or private sale must be handled.

If any rules were overlooked during or after the repossession of your vehicle, you may be able to take legal action against the lender or car repossessor, even if you were behind on payments. If your car or motorcycle was recently repossessed, do the following.

1) Confirm the Repossession

Call the lender or local police department to confirm that the vehicle was repossessed and not stolen. Ask for details, such as which repossession company called the police and when.

2) Gather Repo Documents

Gather all purchase, loan, and repossession documents. These include your car purchase agreement, retail installment sales contract, notice of intent to sell property, deficiency notice, loan payment history, and any collection letters claiming a deficient balance is owed.

You should receive a Notice of Intent to Sell Property from the lender after your vehicle is repossessed. This notice explains how you can retrieve the vehicle, how much you must pay, the location of the vehicle, and the time and location of a private sale or auction. You should receive this notice before the vehicle is sold at private sale or auction with enough time for you to get the car back.

The lender must also provide a notice that confirms the sale price after a vehicle is sold, called a Deficiency Notice. If the sale price does not pay off the balance that is owed on the loan, you will owe the remaining balance, even if the vehicle was voluntarily given back.

3) Don’t Sign a Waiver

Do not sign any waiver or release agreement to get your vehicle back. Signing a waiver could negate any legal claim for wrongful actions by the lender. The law does not require you to sign documents to retrieve your vehicle, even if the repo agent or storage yard asks for one.

4) Get Legal Help

If you believe your vehicle was wrongfully repossessed, gather all of your documents and contact Flitter Milz for a free evaluation of your case.  Our firm will review your loan and repossession documents at no cost, and determine whether your consumer rights have been violated.

 

Responsibilities of a Co-Signer

Sometimes a friend or relative with poor credit may ask you to co-sign on their car loan. It’s important to know that co-signers take on financial responsibilities for the duration of the loan. Co-signing does not just mean that you are a character reference for the borrower. Before you sign, keep the following five points in mind.

1) Get Familiar with the Account

Before you sign, make sure you know what you are agreeing to. Know the purpose of the account, the type of account, the terms, and why your friend or relative needs a co-signer.

If you co-sign, establish access to the account so that you can verify that payments are made on time and as agreed each month.

2) Understand Your Legal and Financial Obligations

Read and understand the credit contract. Be aware that a lender may be able to collect from you even when there is collateral. In the case of a car loan, for example, the lender might demand payment from you instead of repossessing the car. Sometimes, even if the car is repossessed, its value may not be sufficient to pay off the loan.

Understand that if the primary borrower defaults and has missed a payment, the lender can demand payment from you.  As well, the lender, or a debt collector, may try to collect from you.  The debt may include the principal amount, plus interest, late fees or collection costs. 

3) Monitor the Payment History

Get access to monthly statements, either online or through customer service, so that you can see when payments were applied to the account. Make certain the lender applied the payment properly, with specific amounts to principal and interest.

Don’t wait until a collector calls saying payments have not been made. By that time, your credit may already have been negatively impacted. Remember, one missed or late payment could mean a black mark on your credit.

4) Check Your Credit Reports

Check your credit reports regularly with Transunion, Experian, and Equifax to see how this loan is being reported. If there are late payments, address the problem with the co-borrower. If the reporting is inaccurate, send written disputes to the credit bureaus.

5) Prepare for the Worst

Create an account where you make the monthly payment. If the co-borrower misses or stops making payments on the loan, you’ll have funds readily available to cover the missed payment and keep your good credit name.

Seek Legal Advice

Flitter Milz is a Consumer Protection law firm that represents consumers involved with matters concerning wrongful vehicle repossession and credit reporting errors.  Contact us for a no cost consultation.

What Happens if I Default on my Car Loan?

An unexpected occurrence like illness or loss of employment can leave you struggling to pay bills on time. If you are unable to pay your car loan on time, the lender may choose to repossess your vehicle. However, the lender must handle the repossession properly – whether you have fallen behind or not.   

1) Seek a Deferment Before Default 

Contact your lender before you default to see if a deferment is possible. A deferment will postpone your payments while you catch up with finances. These postponed payments are then applied to the end of the loan.

It is important to receive written confirmation from the lender showing this change to the original loan agreement. Since the terms of the loan have, in effect, been extended, the consumer needs to see how the lender has calculated any additional money to be paid at the end to satisfy the loan.

A deferment will likely still appear on your credit report, but the effect on your credit will not be as negative as a default.

2) Prepare for Repossession

If your loan is in default, understand that the lender has the right to repossess your vehicle. If you think a repossession is coming:

  • Remove all important car vehicle purchase and loan documents from your vehicle
  • Remove all personal items.
  • Note the current odometer reading 
  • Take photographs of the vehicle – interior and exterior.
  • Request that the lender provide you with a written loan payment history and a payoff figure.

3) Evaluate how to Get Your Vehicle Back

The loan agreement that you sign at the time of purchase details your rights if the vehicle is repossessed. If you financed through the dealership, this document is called the Retail Installment Sales Contract or RISC. It will state whether you must pay off the full balance of the loan, pay only past due payments, and pay for towing and storage fees.

After the repossession, you are entitled to receive a notice that details the terms for you to get your car back. This notice may be called a Notice of Intent to Sell Property. You should receive this notice before the vehicle is sold.  Once the vehicle is sold, the lender is to send a Deficiency Letter which confirms the selling price of the vehicle and any remaining balance owed on the loan.

Seek Legal Assistance

If your vehicle has been repossessed within the past six years, whether you fell behind on payments or not, you may have a case to pursue against the lender for wrongfully repossessing your car, truck, boat, motorcycle or RV. Contact Flitter Milz for a no-cost consultation.

Any Change to the Terms of your Auto Loan must be in writing

Many times a job loss, illness, death in the family or divorce cause a hardship making it difficult to keep up with financial obligations. When a borrower defaults on auto loan terms, such as late or partial payments, a lapse in insurance coverage, or death of borrower, the lender may choose to repossess the vehicle.

The loan agreement signed at the time of purchase, or Retail Installment Sales Contract, details the lender’s rights if you default on the terms of the loan, and your rights if the vehicle is repossessed.

Lending money for an auto loan gives the bank or credit union a security interest in the vehicle.  If the loan terms are not met, the vehicle can be repossessed from the borrower.  The lender may demand full payment of the loan, payment of only past due payments, and payment of repossession charges and storage fees.

The lender and borrower may discuss alternative payment options, such as deferred payments. If any changes are made to the terms of a signed loan agreement, the borrower must get those terms in writing from the lender.  For example, if payments have been added to the end of the loan, the lender must show the calculation of any additional funds required to satisfy the loan.

Never rely on a verbal agreement. Any changes to the original terms of an agreement should be in writing.  

Seek Legal Assistance

Whether you have fallen behind on your auto loan payments or not, if your vehicle has been repossessed in the past six years, Flitter Milz will evaluate the repossession for potential violation of your consumer rights. Contact Us for a no cost legal evaluation.

Is Your Vehicle at Risk of Repossession?

Any number of life situations may impact your ability to keep up with car payments.  Hours may have been reduced at work.  A family member may be seriously ill.  You may be going through a divorce.  If you believe your vehicle may be at risk of repossession, follow these six simple steps.

1) Gather Important Documents

Remove all car purchase and loan documents from your vehicle immediately. Keep these documents in a safe place in your home, not in your car. In most cases, auto lenders are not required to contact you in advance of a repossession. If your car is repossessed, gather all car purchase and finance documents for a qualified consumer protection attorney to review.

2) Request a Loan Payment History from the Lender

Contact the lender for a complete Loan Payment History which reflects all payments from the date the vehicle was purchased to the present.

If the payment history does not agree with your records, you may dispute the errors with the lender. If you defaulted on your payments, the payment history will show late fees, interest, or other charges added to your account. Be sure that the lender’s calculations are correct.  If any payments were not recorded properly or were misapplied, send a written dispute to the lender with documents that support your dispute.

3) Photograph the Condition of Your Car

Take photos that show the current condition of your vehicle, including the interior, exterior and odometer reading.

4) Do Not Hide Your Vehicle

It is illegal to hide your vehicle if the lender is attempting repossession. Review your signed loan agreement for the terms of your loan.

5) Secure Any Agreement to Defer or Avoid Repossession In Writing

If you have an understanding with the lender to permit you to catch up on payments or defer a repossession, be sure to get that agreement in writing. Whether you get a letter from the lender, have an exchange of emails, or send your own letter detailing the terms, it is important to create a document which confirms the agreement.

6) Seek Legal Help

Contact Flitter Milz for a free evaluation of your case.  Whether you have fallen behind on payments or not, the lender must follow the law.