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.

Risks of Repossession

Even High Earners fall behind on car payments

Many Americans struggle with debt.  Especially now, as recent reports show that more people are falling behind on their personal loans and credit cards. It’s not just low-income families, but higher earners are having trouble too.

According to the Federal Reserve Bank of New York, about 4.8% of household debt is now late. That is the highest level since 2017.  Auto repossessions in the 4th quarter of 2025 were reported at over 800,000 vehicles—nearing a 15 year high—with over 3 million repossessions in 2025.

Debt Is Growing — Even for Middle-Income Families

Nonprofit credit counseling agencies say they are seeing more people from various income brackets asking for help. In fact, many agencies reported a big jump in new clients in 2025.

Before the pandemic, the average person seeking credit counseling made about $40,000 a year and had around $10,000 in unsecured debt, such as credit cards or personal loans. Today, financial stress is spreading beyond low-income households. The average person making about $70,000 a year carries nearly $35,000 in unsecured debt  That’s about half of their yearly income.

What Is “Survival Debt”?

Experts say people are shifting from “extra spending” debt to “survival debt.” This means many families borrow money by using high-interest credit cards or loans to pay for basic needs such as groceries, gas, utility bills, and rent or mortgages. Although credit may act as a lifeline to prevent hunger or homelessness, it often leads to a cycle of only making minimum payments, which ultimately keeps the consumer in debt.

Mortgage and Credit Card Problems Are Rising

Falling behind on credit cards, auto loans and mortgages have become more common.  For example, about 13% of people with FHA home loans show an increase in making late or missed payments.  These loans, often used by first-time homebuyers, may result in mortgage foreclosures.

Why the Numbers May Look Better Than They Are

Some people enroll with credit counseling agencies to assist with management of debt. The agencies help with financial education, budgeting and payment plans to oversee regular payments to accounts.  The advantage is that these plans may combine several obligations into one monthly payment, and offer a lower interest rate.  As well,  the credit bureaus may list the accounts as “current” while minimum payments are made, instead of listing late or missed payments.

What This Means for You

Conflicts about money and finances can be destructive to relationships. When savings are gone and safety nets for emergencies are lost, pressure intensifies for couples with every bill that comes to the house.

Seek Help from Qualified Consumer Lawyers

If you are struggling with debt and have begun to receive collection calls, have issues with inaccurate information on your credit report, or are worried about a possible repossession of your car, you have legal rights. Contact Flitter Milz for a no-cost consultation.
Toll Free:  888-668-1225 or Email: consumers@consumerslaw.com

 

 

 

Sourced – Americans With Higher Incomes Are Starting to Fall Behind on Payments, Wall Street Journal, February 12, 2026, Imani Moise.

Car Repossessions on the Rise

Car repossessions are increasing across the United States. A repossession can happen when a borrower does not satisfy the terms of their loan. The numbers are rising quickly. In 2025, there were approximately 3 million vehicle repossessions across the country. We have not seen levels this high since the Great Recession of 2008 – 2009.

The High Cost of a Car Purchase

The cost of purchasing a car is higher than ever.  Last year, the average price of a new car was more than $50,000, and used cars about $26,000. It has been reported that the average monthly payment for a new car is about $749, where a used car is about $529.

The High Cost of Financing an Auto Loan

Interest rates on car loans also remain high. Recent data shows average interest rates of about 6.5% for new vehicles and around 10–11% for used vehicles. At Flitter Milz, we hear from clients with used car finance rates of up to 20% and higher. Higher interest rates make monthly payments more expensive, especially for borrowers with lower credit scores – sometimes called “subprime loans.”

Behind on Auto Loan Payments

When borrowers fall behind on payments lenders may repossess the vehicle within 60 to 120 days after a payment has been missed. For subprime lenders or “buy-here-pay-here” loans, repossessions could occur within 30 days or less after the first missed payment. In most cases, there is no requirement for the lender to notify the borrower in the advance of a repossession.

Steps to Take Before the Repossession

1) Gather all documents from the sale
and finance of the vehicle.
2) Keep all documents in a safe place –NOT IN THE VEHICLE.
3) Take photos of the interior and exterior of the vehicle, to document the condition of the vehicle.
4) Take a photo of the odometer reading.

After the Repossession

Once a repossession has occurred, the lender is required to send a letter through the mail which confirms the repossession took place.  The letter, frequently called a NOTICE OF INTENT TO SELL PROPERTY, will detail steps for the borrower to retrieve the vehicle.

If the borrower is not able to get the vehicle back, the lender may take steps to sell the vehicle at a private sale or auction. Once the vehicle is sold, the lender will send a second letter to the borrower confirming the sale price and show the calculation of any remaining balance owed to satisfy the loan.

NOTE:  Do not discard any letters or notices, including mailing envelopes, emails or texts, received from the lender after repossession.  These documents are important for a legal evaluation.

Qualified Legal Help After Repossession

Flitter Milz has represented many consumers across the country who have fallen victim to car repossession. If your vehicle was repossessed, gather all documents related to the vehicle purchase, financing and repossession and forward them to our office for a legal review. There is no cost for the consultation.
Contact Us:  Toll Free:  888-668-1225   Email:  consumers@consumerslaw.com

Borrowers have rights after vehicle repossession

CARS       TRUCKS       MOTORCYCLES       BOATS       RVs

Flitter Milz is the authority in representing victims of wrongful repossessions by banks, credit unions, financial institutions and their repossession agents.

Borrowers understand that their vehicles can be repossessed if there’s been a default, such as missed or late payments, a lapse in auto insurance, or other cause. However, lenders must follow the law when a vehicle is repossessed.

Whether you missed payments on your auto loan or not, your consumer rights may have been violated. Our firm will evaluate the repossession of your vehicle at no cost.

After repossession, ask yourself these questions:

Did the repo agent act abusively or damage property?
Repo agents can’t threaten or use physical force to take your vehicle, or enter your fenced property without your permission.

 

 

Did the police come and assist the repo agent with the repossession?
The police may be contacted by the repo agent or borrower during a vehicle repossession. Upon arrival at the scene, they are to keep the peace only, or to protect everyone from harm.

 

Did you receive proper notices from your lender after the repossession?
After repossession, the lender is required to send a Repossession Notice which states terms to get the vehicle back and timeframes for the borrower to act.

 

Was your vehicle repossessed within the past six years?

Each state has a different statute of limitations on car repossession debt.  After the statute of limitations has passed on your debt, debtors and collectors can still contact you.  However, they can no longer bring, or threaten to bring, legal action in an effort to collect the debt.

 

Collection of the deficient balance owed on your auto loan?
A Deficiency letter will be sent to the borrower after the vehicle is sold.  This letter shows a calculation of any remaining balance owed to satisfy the loan. The lender may assign collection of this balance to a debt collector.

 

Did the lender file a lawsuit to collect the deficient balance?
The lender may choose to file a lawsuit to collect the deficient balance owed on an auto loan.

 

 

Credit Reporting Auto Loans
After a vehicle repossession, the borrower should obtain current copies of his or her credit reports from Transunion, Experian and Equifax to view accuracy of information related to the repossession. Incorrect information may have an impact on approval for new credit applications.

 

Contact Experienced Consumer Lawyers

Flitter Milz attorneys know repossession law and can protect borrowers from illegal tactics used by banks, credit unions and financial institutions.  We  represent consumers in cases without filing bankruptcy.

 

Contact Us for a no cost legal evaluation of your car, truck, motorcycle, boat or RV.
Phone:  888-668-1225      Email:  consumers@consumerslaw.com

 

 

 

Repossession Class Action Lawsuit Designates Legal Services for cy pres

A recent vehicle repossession class action lawsuit filed in the Lycoming County Court of Common Pleas on behalf of Pennsylvania consumers, asserted that repossession notices sent by a Buy-Here, Pay-Here car dealership and its finance company violated the borrower’s consumer rights.  The class action provided for debt forgiveness, credit report correction, and a cash award to all class members.

Cy Pres Award to North Penn Legal Services

Residual funds, which result from uncashed or non-distributable funds to class members, were awarded to North Penn Legal Services (NPLS), a provider of free civil legal assistance to low-income residents of Northeastern Pennsylvania. These funds are designated as cy pres.

NPLS strives to solve civil legal problems and empower vulnerable populations through professional legal representation, advocacy, and education. NPLS will direct the cy pres funds to continue their work in assisting disadvantaged consumers in Northeastern Pennsylvania.
Pictured  (l-r): Edward G. Schirra, CFO, and Lori Molloy, Esq. of North Penn Legal Services, and Andy Milz, Esq. of Flitter Milz, P.C.

Experienced Class Action Counsel

Flitter Milz, P.C. is a leading consumer protection law firm that pursues class action lawsuits to help people who have been victim to wrongful repossessions, credit report errors, solar panel financing fraud, unfair collection practices, or other types of consumer fraud. Flitter Milz has been recognized for the pursuit of high-profile cases, often involving complex consumer law issues, that have made law and benefited consumers nationwide. Pictured above: Attorneys Cary Flitter (center), Andy Milz (left), Jody López-Jacobs (right).

 

Cosigning a Loan = Risky Business

You might need to consider getting someone to cosign an auto loan if you are unable to qualify for the credit.  Frequently, poor credit or lack of credit history, lack of income, or being able to make a down payment are reasons that a lender would require the borrower to get a cosigner.  But co-signing holds a lot of responsibility…even if you’re doing it for a family member or close friend.

Borrowers need credit approval
The co-signer’s good name and credit history provide additional assurance to the lender that the terms of the loan agreement will be honored with payments being made in full and on time.

 

 


Equal Responsibility for the Loan
Both the co-signer and primary borrower hold equal responsibility for the signed auto loan. When payments are late or missed, the lender has the right to repossess the vehicle.  Credit reports for both the borrower and co-signer will list a negative payment history and the repossession.

 

Obligation to Satisfy the Deficient Balance
The lender may contact the co-signer, and/or the primary borrower, after a vehicle has been repossessed. The bank, credit union or financial institution will look to the co-signer to bring the account current or satisfy the loan in full.  Credit scores may drop as a result and impact existing credit, or make it difficult to obtain new credit for both the borrower and co-signer.

Responsibility transfers to co-signer after default
The responsibility for payment of the loan transfers to the co-signer after primary borrower passes away, loses a job, goes through a divorce, files for bankruptcy, or fails to make scheduled payments.

Seek Legal Help from Consumer Law Attorneys

If you have cosigned an auto loan and the vehicle has been repossessed, seek advice from a qualified consumer protection law firm.

Flitter Milz attorneys are nationally recognized consumer protection lawyers that understand vehicle repossession law and how to help the borrowers after a repossession has occurred.  For a no cost consultation, CONTACT US.
Pictured:  Flitter Milz Attorneys
Cary Flitter (center), Andy Milz (left), Jody López-Jacobs (right)

Flitter Milz Attorneys published in widely-used legal treatises

Repossessions

Andy Milz is a contributing author to REPOSSESSION, National Consumer Law Center (10th ed. 2022) Carolyn Carter, Andrew Milz, et. al., considered the leading legal reference book on consumer repossession issues in the United States.  This reference  appears on the shelves of courthouses and law libraries across the country and provides detailed and comprehensive coverage of repossession law throughout all 50 states.

Pennsylvania Consumer Law

Cary Flitter and Andy Milz recently edited three chapters in PENNSYLVANIA CONSUMER LAW, Carolyn Carter, et. al, Geo. Bisel Co., 2d ed. Supp. (2021).  Annually, Flitter and Milz edit chapters on The Law of Repossessions, Attorneys’ Fees for Consumer Litigation, and Odometer Fraud.  This treatise is considered the leading authority on consumer protection law in the Keystone state.

Flitter Milz is an experienced consumer protection law firm in the area of consumer credit finance and auto repossession law.  The firm has recovered tens of millions of dollars for borrowers who have become victim of wrongful repossessions.  Our attorneys have the experience and knowledge to win your case.   Contact us, for a consultation at no cost.
Pictured:  Cary Flitter (center), Andy Milz (left), Jody López-Jacobs (right).

Can I Keep my car if I file for Bankruptcy? 5 things to know.

Buying a car is costly.  Most people finance the purchase of a vehicle by taking out a loan. The agreement states terms for regular monthly payments to be made until the debt is satisfied. If the borrower defaults on payments, the lender has the right to repossess the vehicle.

Auto Finance Law & Bankruptcy  

However, there is a complicated intersection between auto finance law and bankruptcy. Before taking any action, borrowers must understand the implications of bankruptcy and be able to determine the most prudent steps to take before and after a vehicle has been repossessed. In general, merely having your car or truck repossessed is not enough to warrant filing for bankruptcy.  Let’s try to simplify it.

Repossession = Bankruptcy?  Maybe, maybe not.

  1. Filing a bankruptcy can stop a repossession from going forward.
    When a consumer bankruptcy is initiated, the debtor protections include an “automatic stay.” This means that your creditors are prohibited from taking almost all actions to collect a debt.  This automatic provision can be a powerful way to prevent repossession of the car, but only temporarily.
  2. The automatic stay can last weeks or years.
    The stay begins automatically upon filing and lasts only as long as the Court allows it to, which can be anywhere from weeks to several years, depending on the type of bankruptcy you choose to file. However, if you filed an earlier bankruptcy within a year of the new bankruptcy case, the automatic stay will terminate within 30 days. The judge also has the choice of extending or shortening the time period in certain circumstances. Even if you file for bankruptcy, to keep your financed car you will have to resume a car loan repayment schedule.
  3. Filing a bankruptcy after the repossession will not necessarily get you the car back.
    If the lender already repossessed your car, then the bankruptcy does not necessarily require the lender to return the car.  If the car was already sold by the lender by the time you file bankruptcy, then it is already too late.  However, if the sale has not gone forward, a bankruptcy may stop the lender from selling the car, and perhaps you can get it back by agreeing to ongoing monthly payments. This is something to discuss with your bankruptcy attorney.
  4. If you file bankruptcy, you might have to eventually give up the car, but not always.
    The point of bankruptcy is to help people in debt have a fresh start.  Because of this, there are certain state and federal exemptions you can claim to prevent the car from being lost to the bankruptcy.  For example, under the federal rules, you can claim $4,450 in a motor vehicle as exempt.  This means that if you owe less than that amount on the car, you’ll be able to keep it.  If you owe more, then the trustee may sell your car, pay you $4,450 for the exemption, and distribute the rest among your creditors — unless you make a showing of need before the bankruptcy court, something your bankruptcy lawyer can help with.
  5. Even if you file bankruptcy, you will likely need to continue making car payments throughout the bankruptcy if you want to keep the car.
    This is because the lender has “lien” or “security interest” in the car, which is still recognized in the bankruptcy.  So, if you don’t pay as agreed, or if you default on the car loan in some other way (g. failing to maintain insurance) then the lender may still be able to repossess the car.  Practically speaking, you’ll need to keep paying on the car loan if you want to keep the car through your bankruptcy.

    Borrowers have rights when facing repossession

If your car was already repossessed, you have other rights as a consumer borrower, separate from any bankruptcy proceeding.  Bankruptcy is only one tool or avenue if your car or truck has been repossessed – and it might, or might not, be right for your specific situation. Consult with an experienced consumer lawyer to understand your options outside of a bankruptcy.

Seek advice from an Experienced Consumer Lawyer

If you’re concerned that the lender my repossess your vehicle, or perhaps thinking of filing bankruptcy to get your car back after repossession, contact Flitter Milz for a no cost case evaluation. Our attorneys are knowledgeable of consumer laws that protect borrowers from wrongful repossessions.
Pictured l-r: Attorneys Cary Flitter and Andy Milz.

How to locate your car after repossession?

Lenders are not required to notify the borrower in advance of an auto repossession.  However, after a vehicle has been taken, the lender must send a letter to the borrower outlining terms to get the vehicle back — whether the lender is a bank, such as Well Fargo or Bank of America, a credit union, such as Pennsylvania State Employees Credit Union or Erie Federal Credit Union, or a financial institution such as Driveway Finance or PA Auto Credit. The repossession letter, often called a Notice of Intent to Sell Property, details the location of the vehicle and where personal property may be picked up, the amount to be paid to retrieve the vehicle, and the time period in which the borrower must act before the vehicle is sent to an auction or private sale to be sold.

Let’s face it.  Car repossessions never occur at convenient times. A variety of reasons may have caused default on the loan. The borrower may be suffering an illness or from a death in the family, be going through divorce, or had a job loss. Regardless, once the vehicle has been taken, the borrower must take steps to locate it and find out how to get it back. As well, the lender must follow the law.

The Role of the Repo Agent

After the lender has made the decision to repossess a vehicle, arrangements are made with a repo agent who will locate the vehicle and take it, often without warning.  In advance of the repossession, the repo agent must inform the local police department of their intent to seize the vehicle.  The repo agent may come with a tow truck to the borrower’s home or place of employment. Or, they may track the vehicle finding it at another location, such as at a shopping mall, doctor’s office, or the address of a family member or friend. Sometimes at the time of purchase, the dealership may have installed a GPS tracking device or a remote control car disabler.  The repo agent may use these devices to track vehicles that have been assigned for repossession.

In Pennsylvania, a repossession agent has to be licensed with the Department of Banking and Securities of the Commonwealth and may be hired by a bank, credit union or finance company to repossess cars, trucks motorcycles, RVs, powersport vehicles, boats or airplanes. If a vehicle is missing, the borrower should make calls to the local police and the lender to confirm it was not stolen.

Wrongful Repossession by the Repo Agent

        • Breach the Peace
        • Enter a closed garage to get your vehicle
        • Damage your car or property during the repossession
        • Threaten arrest or violence
        • Force you to pull over while driving
        • Involve the police to aid in the repossession

If you feel the repo agent handled the repossession improperly, gather documents that illustrate what happened and when, such as a written statement of events; photographs or video of the scent, and witness statements.  Contact an experienced consumer protection law firm to evaluate whether your consumer rights were violated.

Borrower’s Rights

Borrowers have legal rights, whether payments were missed or not – without filing for bankruptcy.  If you believe your vehicle may have been wrongfully repossessed, review the terms of the loan agreement to understand steps that may be taken after default. In addition, gather all correspondence sent from the lender after the repossession.  Consult with an experienced consumer protection attorney to evaluate whether your consumer rights were violated.

Your signed Loan agreement
If the loan agreement has been misplaced or was left inside the
repossessed car, the borrower could obtain a copy either by
contacting the lender or the dealership where the vehicle was
purchased.

Gather the following documents sent by the lender after repossession.

Repossession Notice from the lender
This notice will state terms to retrieve the vehicle. The lender
may demand full payment of the loan, or accept past due payments
plus late fees, and costs associated with repossession and storage.
When the borrower can not meet the payment terms to recover the
vehicle, the lender will sell it, either at an auction or private sale.

Deficiency Notice from the lender
Once a vehicle is sold, the lender must inform the borrower of the
sale by sending a letter known as a Deficiency Letter which details
the balance to satisfy the loan.

Retrieve Personal Property
The borrower has 30 days from the date of the repossession notice to recover personal property.  Afterwards, the repo agent may dispose of the property.  If you believe your vehicle is at the risk of repossession, it may be a good idea to remove all personal items and paperwork from the vehicle.

Seek experienced consumer lawyers firm

Flitter Milz has the expertise in representing borrowers whose vehicles have been wrongfully repossessed by banks, credit unions and financial companies. Contact us today for a no cost legal evaluation to determine whether your consumer rights have been violated.

 

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

 

 

 

Auto Repossession and the Pandemic

During COVID, many consumers experienced wrongful repossession of their cars, trucks, motorcycles, RVs or boats — not just by big banks, such as Wells Fargo, Chase, Capital One or Bank of America, but also by credit unions and subprime lenders. While some lenders claimed to have paused repos, the rate of repossessions during the pandemic still seems to be high.  Indeed, as the Fall and Winter of 2021, a lot of COVID pandemic protections states implemented to help consumers reeling with COVID have expired.

After falling behind, many borrowers requested to have payments lowered  or deferred by their lender. Whether suffering from hardships related to unemployment, child care expenses, or missed work due to the pandemic, vehicles were still repossessed.

When do lenders decide to repossess vehicles?

Lenders don’t care why borrowers are late. They want to be paid. Most decisions to repossess are made automatically by lenders’ computer systems, and sometimes as quickly as missing only one payment.  When the system notices a missed payment, repo orders are sent electronically to the repo agent who is assigned to take the car. These same computers will simultaneously send negative late payment and repo notations to the credit bureaus.

Fallen Behind?  Three Steps to consider.

1. Contact your lender
Call the bank, credit union or financial institution and discuss whether  payments can be postponed.  Possibly, the lender may be willing to negotiate the due date or amount.  Be sure to get any changes to payment terms in writing  – whether it’s a big bank like Bank of America or Capital One, a credit union or a sub-prime lender, you must receive confirmation of any changes to the loan from the lender.
2. Consider refinancing the loan
Contact other credible lenders to see whether your loan can be refinanced at terms that you can meet.
3. Seek legal guidance from Flitter Milz, P.C.
The attorneys at Flitter Milz are experienced in representing consumers against banks, credit unions and financial institutions, as individuals and in class action lawsuits, for violation of their rights after repossession.

MOST IMPORTANT — Don’t ignore the debt.  Seek a solution.

Borrowers have rights after repossession

Are you the victim of a wrongful auto repossession?

Wrongful Repossession:  Was my vehicle repossessed in error?
Breach of the Peace:  Did the repo agent use violence or damage my property?
Police Involvement:  Did the police assist in the repossession?
Improper Notices:  Did the lender provide proper notices after the repossession?
Credit Reporting:  Are there errors on my credit report related to repossession?

Repossessions, Credit Reporting & Credit Scores

Credit Reports
Vehicle repossessions carry negative weight on credit reports.  Consumers must check their reports for accuracy and determine whether the lender has listed the payment history, loan status or balance owed in error.  To obtain a current copy of your credit report from Transunion, Experian or Equifax consumers may write to the credit bureau or visit:  annualcreditreport.com.

When errors appear on credit reports, the consumer must send a written dispute to the bureau.  The dispute must be accompanied by supporting documents that illustrate the error.  The credit bureaus have 30 days to respond to the written dispute.

Credit Scores
Auto loans that have fallen into default, and ultimately the vehicle is repossessed, a negative listing will appear on the borrower’s credit report.  The lender’s tradeline may be listed on the reports for 7 1/2 years from the date the last payment was made. This listing will factor in to a lowered credit score and make it difficult for the borrower to secure favorable terms on loans going forward.

Seek Legal Help After Repossession

Flitter Milz is a nationally recognized consumer protection law firm that pursues matters against banks, credit unions and financial institutions for the wrongful repossession of cars, trucks, motorcycles, RVs and boats.  Contact Us for a no cost legal evaluation to determine whether your consumer rights have been violated.

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

 

Are there Advantages to a Voluntary Repossession?

While most repossessions are initiated by the lender, sometimes it’s the borrower that decides to voluntarily surrender his or her vehicle.  Whether or not, after a repossession it’s important for the borrower to understand his or her financial responsibility to satisfy the loan once the lender has taken possession of the vehicle.

Surrendering Your Vehicle

The choice to voluntarily surrender your vehicle is not easy decision. Borrowers understand that the lender has the right to repossess the vehicle if they can’t meet the terms agreed upon in their auto loan agreement.

After payments are missed or late, the lender could come to take the vehicle at any time of day or night. Repossessions are stressful and usually occur at the most inopportune times.

Often, borrowers faced with the possibility of repossession may choose to voluntarily give their car back. A voluntary repossession allows the borrower to have some control and address financial troubles in a less stressful manner, and without the shock of finding the car missing.

Ten Advantages of a Voluntary Repossession:

1. Arranged return of the vehicle – date, time and location
2. Removal of all personal belongings from the vehicle
3. Removal of all important documents from the vehicle
4. Removal of the license place
5. Photograph the condition of the vehicle – interior & exterior
6. Take odometer reading to know precise mileage on the vehicle
7. Contact auto insurance carrier to inform of the voluntary repossession
8. Deliver the vehicle and keys to a convenient location
9. May not have to pay a repossession fee
10. May not have to pay storage fee

Voluntary Repossession Will Not Cancel Your Loan

A voluntary repossession does not dismiss the responsibility that the borrower has to satisfy the loan.  The financial obligation and collection process from a voluntary repossession are the same as a regular repossession.

First, after taking back the vehicle, the lender will send a repossession notice, or Notice of Intent to Sell Property, to the borrower. This letter states the location of the vehicle, terms to get the vehicle back, where to retrieve personal property, and where and when the vehicle will be sold.

Second, once the vehicle has been sold, the borrower will receive a letter called a Deficiency Notice.  This notice informs the borrower of the selling price of their vehicle and shows the calculation of any remaining balance owed on to satisfy the loan.

Collection of the deficient balance may be handled by the lender’s collection department, or the lender may assign this task to a third-party collector. If the collector is unsuccessful in collecting the balance, the lender may choose to file a lawsuit against the borrower to collect this balance.

Repossession and Your Credit Report

Both voluntary surrender and lender-initiated repossession carry negative weight on a credit report.  It’s not just the repossession that is listed on credit reports, but also, the missed or late payments that may have led to the repossession in the first place.

These negative listings can remain on your credit report for up to seven and one-half years, jeopardizing the ability to obtain another auto loan, or one with favorable credit terms.  In addition, repossessions could have other negative consequences such as creditors raising interest rates, the reduction of credit limits, or an overall drop in credit scores.

Seek Legal Help After Repossession

Flitter Milz is a nationally recognized consumer protection law firm that pursues matters against banks, credit unions and financial institutions for the wrongful repossession of cars, truck, motorcycles, RVs and boats.  Contact Us for a no cost legal evaluation to determine whether your consumer rights have been violated.  Pictured:  Cary Flitter (center), Andy Milz (left), Jody López-Jacobs (right)