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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.\u00a0 Indeed, as the Fall and Winter of 2021, a lot of COVID pandemic protections states implemented to help consumers reeling with COVID have expired.<\/p>\n
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After falling behind, many borrowers requested to have payments lowered\u00a0 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.<\/p>\n
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Lenders don\u2019t care why borrowers are late. They want to be paid. Most decisions to repossess are made automatically by lenders\u2019 computer systems, and sometimes as quickly as missing only one payment.\u00a0 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<\/a>.<\/p>\n Fallen Behind?\u00a0 Three Steps to consider.<\/strong><\/p>\n 1. Contact your lender<\/strong> MOST IMPORTANT — Don\u2019t ignore the debt.\u00a0 Seek a solution.<\/strong><\/p>\n Are you the victim of a wrongful auto repossession?<\/a><\/strong><\/span><\/p>\n Wrongful Repossession<\/u><\/strong>:\u00a0 Was my vehicle repossessed in error? Credit Reports<\/strong> When errors appear on credit reports<\/a>, the consumer must send a written dispute to the bureau.\u00a0 The dispute must be accompanied by supporting documents that illustrate the error.\u00a0 The credit bureaus have 30 days to respond to the written dispute.<\/p>\n Credit Scores<\/strong> 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.\u00a0 Pictured<\/em>:\u00a0 Cary Flitter (center), <\/p>\n","protected":false},"excerpt":{"rendered":" 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 … <\/p>\n
\nCall the bank, credit union or financial institution and discuss whether\u00a0 payments can be postponed.\u00a0 Possibly, the lender may be willing to negotiate the due date or amount.\u00a0 Be sure to get any changes to payment terms in writing\u00a0 \u2013 whether it\u2019s 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.
\n2. Consider refinancing the loan<\/strong>
\nContact other credible lenders to see whether your loan can be refinanced at terms that you can meet.
\n3. Seek legal guidance from Flitter Milz, P.C.<\/a><\/strong>
\nThe 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.<\/p>\nBorrowers have rights after repossession<\/u><\/strong><\/h3>\n
\nBreach of the Peace<\/u><\/strong>:\u00a0 Did the repo agent use violence or damage my property?
\nPolice Involvement<\/u><\/strong>:\u00a0 Did the police assist in the repossession?
\nImproper Notices<\/u><\/strong>:\u00a0 Did the lender provide proper notices after the repossession?
\nCredit Reporting:<\/strong>\u00a0 Are there errors on my credit report related to repossession?<\/p>\nRepossessions, Credit Reporting & Credit Scores<\/strong><\/h3>\n
\nVehicle repossessions carry negative weight on credit reports.\u00a0 Consumers must check their reports for accuracy and determine whether the lender has listed the payment history, loan status or balance owed in error.\u00a0 To obtain a current copy of your credit report from Transunion, Experian or Equifax<\/a> consumers may write to the credit bureau or visit:\u00a0 annualcreditreport.com<\/a>.<\/p>\n
\nAuto loans that have fallen into default, and ultimately the vehicle is repossessed, a negative listing will appear on the borrower’s credit report.\u00a0 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.<\/p>\nSeek Legal Help After Repossession<\/u><\/strong><\/h3>\n
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Contact Us<\/strong><\/a><\/span> for a no cost legal evaluation to determine whether your consumer rights have been violated.<\/p>\n
\nAndy Milz (left), Jody L\u00f3pez-Jacobs (right).<\/p>\n