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When banks record an increase in credit losses and delinquencies, often there is an uptick in repossessions.\u00a0 These indicators not only reflect repossessions of cars and trucks, but also pleasure vehicles, such as RVs, boats and motorcycles.<\/p>\n
Fortunately for consumers, the laws that protect victims of car and truck repossessions, also apply to motorcycles, RVs and boats.<\/p>\n
If you\u2019ve fallen behind on your loan payments and are worried that your motorcycle, or other vehicle, is in danger of repossession, here\u2019s what you need to know.<\/p>\n
It\u2019s understood that when you take out a loan to finance a motorcycle, you must abide by the terms of that contract.\u00a0 If a borrower defaults on those terms, the lender has the right to take back, or repossess, the bike.\u00a0 The finance contract will define what counts as a default.\u00a0 Typically, missed or incomplete payments, or a lack of insurance, constitute a default.\u00a0 Once the borrower defaults on the loan, the lender may come at any time to repossess it.<\/p>\n
Having your motorcycle repossessed can feel like a major defeat, especially when you suspect your rights as a consumer have been violated in the process.<\/p>\n
Once a motorcycle has been repossessed there are laws that protect a borrower from a lender\u2019s wrongful repossession tactics.<\/p>\n
After a motorcycle repossession, the lender must provide specific written communications to the borrower. First, a letter that states terms to retrieve the bike, and second, if it is sold, a letter informing the borrower of the motorcycle\u2019s selling price and any remaining balance owed on the loan. Whether the lender has repossessed a motorcycle or another vehicle, they must provide these letters to the borrower.<\/p>\n
The repossession notice, or Notice of Intent to Sell Property<\/strong>, is sent to the borrower after the motorcycle has been repossessed.\u00a0 The letter will list terms that will allow the borrower to recover his or her motorcycle such as, the payments required, the time period to act, the location of the motorcycle and the date of the private sale or auction.\u00a0 Sometimes, the lender will allow the borrower to get their vehicle back by paying past-due payments to reinstate the loan.\u00a0 Other times, payment of the full loan may be required, plus the costs for repossession and storage fees.<\/p>\n Notice of Deficiency<\/strong><\/a><\/p>\n If the borrower is not able to meet the terms stated in the repossession notice, the lender will arrange to sell the motorcycle at an auction or private sale.\u00a0 Once the bike has been sold,\u00a0 the lender must send a second notice to the borrower called a Notice of Deficiency<\/strong>.\u00a0 This letter will confirm the sale price, fees for storage and repossession and notify the borrower of any remaining balance owed on the loan. If you fail to pay back the Deficient Balance, the lender may assign the collection to a law firm or debt collection agency, which could subject you to a potential legal action by the lender and a black mark on your credit report.<\/p>\n Motorcycle repossession are frequently volatile.\u00a0 However, the repo agent, who is a third-party hired by the lender to tow the bike, must follow the law too. They are not allowed to use physical force or threaten harm, and they are not permitted to enter someone\u2019s property without permission.\u00a0 If the repo agent damages your property, or removes your motorcycle from a closed garage without your consent, your consumer rights may have been violated.<\/p>\n Victim of Motorcycle Repossession? Seek Legal Help from a Qualified Consumer Lawyer<\/strong><\/p>\n The attorneys at Flitter Milz can help set things right. Our lawyers are experts in motorcycle repossession laws, with a proven record of taking action against banks, credit unions and other financial institutions for improper repossession tactics. Contact us<\/strong> today to find out how we can help you.<\/p>\n![\"\"](\"https:\/\/www.consumerslaw.com\/blog\/wp-content\/uploads\/2019\/09\/Fan-2.jpg\")
Notice of Intent to Sell Property.<\/a> <\/strong><\/p>\n2. Repo Agents can not threaten you<\/h3>\n
3. Police may not Breach the Peace<\/h3>\n
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Many times the police are contacted by the repo agent or the borrower during a motorcycle repossession.\u00a0 The role of the police is to aid in keeping the peace, and make sure that no one is harmed or property damaged.\u00a0 They are not to assist with the repossession by threatening arrest or demanding the car or keys be released to the repo agent. \u00a0Once the police become involved in aiding the repossession, they may have crossed the line from keeping the peace to breaching the peace. At this point the borrower\u2019s constitutional rights may have been violated.<\/p>\n
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