Your car is stolen overnight, and all of a sudden, you cannot get to work, pick up your children, or go to a doctor’s appointment. What is worse is that most lenders in Massachusetts auction the repossessed car at a lower price than what you owed and try to get the balance remaining more than $11,000.
Most Massachusetts people think that once the tow truck drives away, the battle is over, but that is not true.
A qualified repossession attorney in Massachusetts can examine the manner in which your vehicle was repossessed, spot the legal breaches that most consumers remain unaware of, and put an end to lenders obtaining the money they are not legally entitled to.
Continue reading to know five effective methods of how an attorney can defend your rights, your money, and your future course of action.
1. Audit Whether the Repossession Was Legal in the First Place
A Massachusetts repossession lawyer verifies the fundamentals that most consumers never consider.
Was there a valid default?
Was due notice given?
Did the lender even have the authority to repossess your car in the first place before any negotiation process commenced?
Outstanding auto loan balances have climbed past $1.6 trillion, and the CFPB’s research on repossession trends has found that vehicles are sometimes assigned for repossession even when borrowers made timely payments or received a loan modification.
Thus, a lawyer draws your payment history, loan records, and lender correspondence to ensure that the repossession was in fact going to occur. Otherwise, that discovery alone can lead to the unraveling of all that followed.
After the legality of the repossession itself has been determined, the next question is how it was conducted– since even an authorized repossession may cross a legal boundary.
2. Provide a Breach of the Peace Occurred
Although the repossession may have been technically authorized, the manner of the repossession is another legal issue.
The FTC consumer guidance on vehicle repossession forbids the use of force, the threat of force, or the entry of a closed garage without permission, which is a violation of the law, termed a breach of the peace.
Since the word itself is not clearly defined, this is where experience in law would be of the utmost importance. A lawyer talks to witnesses, gets doorbell records and reinstates the chronology of events during the tow.
Courts have ruled that the mere fact that the repossession proceeded after a verbal protest by a debtor can be illegal, and that what happens in the first sixty seconds can frequently determine the outcome of the case.
By establishing this breach, one can nullify a repossession and any debt associated with it.
3. Negotiate Redemption or Reinstatement Before the Sale
Many borrowers don’t realize they can reclaim their vehicle by paying the amount owed or by reinstating the loan and resuming payments, but lenders rarely explain this option or highlight the deadline. A lawyer makes a call to the lender, verifies the redemption price, and negotiates terms prior to the vehicle being auctioned – frequently in a matter of days. Losing this window typically involves never seeing the car again, so quick legal action may spell out the difference between getting your car back and moving on.
When there is no redemption, and the sale is made, the battle is fought on a new front; what the lender claims you still owe.
4. Challenge an Unfair or Unlawful Deficiency Balance
In case the lender sells the car below the balance, you may be hounded over the difference.
According to the CFPB, the average deficiency balances above $11,000 increased because of increased vehicle prices and financing rates. The law demands that the sale must be commercially reasonable and must have been preceded by due notice.
A lawyer examines the price of the auction, the paperwork notice, and the charges on your bill. By not following these requirements, lenders may lose the right to collect the debt.
When you have proven that there is a violation in any of these phases, the last thing to do is ensure that it really pays off for you.
5. Pursue Damages for Wrongful Repossession
You may be entitled to more than just getting your car back or erasing the debt.
A claim can be brought by a lawyer as a result of conversion, emotional distress or statutory damages relating to the violation, and that is sufficient to cover the amount you owe.
With the frequency with which regulators have reported illegal repossession practices, these claims are not an exception but a realistic way to recover from those borrowers who pursue such claims.
Conclusion
While the repossession may seem final when the tow truck starts to move, the battle over what went wrong and what you owe is likely just starting.
There are strict rules that lenders must adhere to: proper notice, no breach of peace, and a commercially reasonable sale. A legal professional checks each of those steps and challenges those that don’t go all the way.
Violations of repossession are still not an uncommon occurrence.
If you feel that something wasn’t right, do not assume that the debt has been settled; be sure to have it fully examined.
