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When you finance or lease a vehicle, your creditor holds important rights on the vehicle until you've made the last loan payment or fully paid off your lease obligation. These rights are established by the signed contract and by state law. If your payments are late or you default on your contract in any way, your creditor may have the right to repossess your car. Talking with Your Creditor

It is easier to try to prevent a vehicle repossession from taking place than to dispute it afterward. Contact your creditor when you realize you'll be late with a payment. Many creditors will work with you if they believe you'll be able to pay soon, even if slightly late. Sometimes you may be able to negotiate a delay in your payment or a revised schedule of payments. If you reach an agreement to modify your original contract, get it in writing to avoid questions later. Still, your creditor may refuse to accept late payments or make other changes in your contract and may demand that you return the car. By voluntarily agreeing to a repossession, you may reduce your creditor's expenses, which you would be responsible for paying. Remember that even if you return the car voluntarily, you're responsible for paying any deficiency on your credit or lease contract, and your creditor still may report the late payments and/or repossession on your credit report. Seizing the Car

In many states, your creditor has legal authority to seize your vehicle as soon as you default on your loan or lease. Because state laws differ, read your contract to find out what constitutes a "default." In most states, failing to make a payment on time or to meet your other contractual responsibilities are considered defaults. In some states, creditors are allowed on your property to seize your car without letting you know in advance. But creditors aren't usually allowed to "breach the peace" in connection with repossession. In some states, removing your car from a closed garage without your permission may constitute a breach of the peace. Creditors who breach the peace in seizing your car may have to pay you if they harm you or your property. A creditor usually can't keep or sell any personal property found inside. State laws also may require your creditor to use reasonable care to prevent others from removing your property from the repossessed car. If you find that your creditor can't account for articles left in your car, talk to an attorney about whether your state offers a right to compensation. Selling the Car

Once your creditor has repossessed your car, they may decide to sell it in either a public or private sale. In some states, your creditor must let you know what will happen to the car. For example, if a creditor chooses to sell the car at public auction, state law may require that the creditor tells you the date of the sale so that you can attend and participate in the bidding. If the vehicle is to be sold privately, you may have a right to know the date it will be sold. In either of these circumstances, you may be entitled to buy back the vehicle by paying the full amount you owe, plus any expenses connected with its repossession (such as storage and preparation for sale). In some states, the law allows you to reinstate your contract by paying the amount you owe, as well as repossession and related expenses (such as attorney fees). If you reclaim your car, you must make your payments on time and meet the terms of your reinstated or renegotiated contract to avoid another repossession. The creditor must sell a repossessed car in a "commercially reasonable manner" - according to standard custom in a particular business or an established market. The sale price might not be the highest possible price - or even what you may consider a good price. But a sale price far below fair market value may indicate that the sale was not commercially reasonable. Paying the Deficiency

A deficiency is any amount you still owe on your contract after your creditor sells the vehicle and applies the amount received to your unpaid obligation. For example, if you owe $2,500 on the car and your creditor sells the car for $1,500, the deficiency is $1,000 plus any other fees you owe under the contract, such as those related to the repossession and early termination of your lease or early payoff of your financing. In most states, a creditor who has followed the proper procedures for repossession and sale is allowed to sue you for a deficiency judgment to collect the remaining amount owed on your credit or lease contract. Depending on your state's law and other factors, if you are sued for a deficiency judgment, you should be notified of the date of the court hearing. This may be your only opportunity to present any legal defense. If your creditor breached the peace when seizing the vehicle or failed to sell the car in a commercially reasonable manner, you may have a legal defense against a deficiency judgment. An attorney will be able to tell you whether you have grounds to contest a deficiency judgment. Remember this repossession will stay on your credit for 7 years.

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Q: What is the usual fee to call off a repo on a car?
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Related questions

If your car was repossessed for a payment that the finance company forgot to record are you still responsible for the repo fee?

IF you were NOT in DEFAULT, then it was a wrongful repo and you shouldn't have to pay. Call a local attorney NOW.


How do you get your car back from a repo when you are only 3 days late?

You pay the LENDER what you are behind and the repo fee and go get it.


Can a lender charge a fee for a repo vehicle without showing proof of collection or how fee was calculated or if they drove the car does that fee have to be disclosed in contract?

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Is there a fee to retrieve your possession from the repossessed car?

The repo agency will likely charge a "storage fee" for those items when you go to get them back.


If you found your repo'd car in a mall handicapped parking space and reclaimed it as well as making good on the loan can you legitimately be charged a repo fee 2 years later?

Well now, you state that it WAS repoed, so yes you can be charged a repo fee for a repo performed.


How can you get your possessions from your repo car?

The repo company will remove personal items from vehicles they repossess. They'll typically charge a storage fee for you to retrieve those items.


Can a car place repo your car if you have made half of your payment?

Not making the entire payment is still a default on payment. You will be charged the late fee and you will need to make it right with the bank or they will start the process of repo.


If there is a repo fee on your account does that mean they are trying to repossess your car?

Good question...how did you find out about the repo fee?? Have you been repoed before?? Are you in default now?? If you're not in default, dont worry about it, hope they repo it so you can sue them.... IF you ARE in default, pay up today Yes that is what it means. If you were behind on your payments and didn't call the lender to work out a deal before a repossession order was issued, Then you payed before a repo agent picked it up you are responsible to pay the repo fee and the lender is responsible for calling off the repo. If you have payed and the lender failed to call the repo agent and you get repoed you can bring up ''wrongfull repossession charges'' and that falls on the lender. In your signed contract you agreed to this and so did the lenders. The above response is incorrect THE LENDER CANNOT CHARGE YOU FOR SOMETHING (a repo in this case)WHICH HAS NOT TAKEN PLACE !!!!!!!!!!!!!!!!!!!!!!!!!! IF they try too.... SUE them and there "agents"


Your car was repossess in ga Can you be charged by the repo company to retrieve your personal items in the car?

An INVENTORY fee is allowed. The lender or repo person is not entitled to your personal property it is yours they should not charge you for it.Repo guys often charge illegal fees to make more money.If they won't give you your p.p. call the cops then fill out a stolen report and sue the lender not the repo guy he is a chimp for the bank.


Do car repo companies pay finder's fee if you tell them where the car is being kept?

its not too common anymore... if they do, they might have you sign a tax form.......


Can you get your car back after a repo?

Husband dies, his car left at a friends house, friend would not give car up, car was voluntarily repossesed, can you still get car after a repo? What is needed?


Is it legal for a repo company to charge a storage fee to retrive personal property from the car in Nevada?

Yes, it is generally legal for a repo company to charge a storage fee for retrieving personal property from a repossessed car in Nevada. However, the amount and terms of the storage fee should be stated in the contract or agreement between the repo company and the vehicle owner. It is advisable to review and understand the terms and conditions before engaging with the repo company.