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Protection from Repossession<\/h2>\nProtection from Repossession<\/h2>\nThe Servicemembers Civil Relief Act (SCRA) provides special protections for active service members that have defaulted on car loan payments.\u00a0 To qualify, servicemembers must have signed the loan agreement, and paid at least the deposit or first installment payment,\u00a0before<\/em> entering military service. To repossess a vehicle, the lender\u00a0must obtain a court order.<\/p>\n 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\u00a0to follow the law, whether payments were missed or not.\u00a0If the lender overlooks the law, the servicemember may bring a lawsuit against the lender.<\/p>\n 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.\u00a0 In addition, credit reports may list delinquencies or the repossession and lower credit scores, which make it difficult to obtain a new loan.<\/p>\n All consumers are entitled to receive one free credit report every twelve months directly from Transunion, Experian and Equifax.\u00a0\u00a0Check your credit reports<\/a>\u00a0, and make sure the information is accurate.<\/p>\n 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<\/strong><\/span><\/a> for a no cost consultation.<\/p>\n Pictured above:\u00a0 Attorneys Cary Flitter (center), Andy Milz (left), Jody L\u00f3pez-Jacobs (right).<\/p>\n","protected":false},"excerpt":{"rendered":" Protection from Repossession The Servicemembers Civil Relief Act (SCRA) provides special protections for active service members that have defaulted on car loan payments.\u00a0 To qualify, servicemembers must have signed the loan agreement, and paid at least the deposit or first installment payment,\u00a0before entering military service. To repossess a vehicle, the lender\u00a0must obtain a court order. … <\/p>\nReasons for Repossession<\/h2>\n
Requirements AFTER Repossession<\/h2>\n
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After a vehicle has been repossessed, the lender is required to send proper notices to the borrower.\u00a0Shortly after the repossession,\u00a0the lender will send a letter called a Notice of Intent to Sell Property,\u00a0which confirms the repossession occurred and details terms for to retrieve the vehicle. If the borrower is\u00a0not 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. \u00a0If the borrower is not notified properly, there may be grounds to file a lawsuit against the lender.<\/p>\nCredit Reporting and Car Repossession<\/h2>\n
Seek Legal Assistance<\/h2>\n
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Servicemembers that have fallen behind on payments for auto loans and are facing repossession\u00a0should seek the advice from a qualified consumer protection attorney to advise on their consumer rights.<\/p>\n