Guide to Avoiding Car Repossession

Making late payments causes significant inconvenience and distress. To help you along the way, find a reliable repossession attorney for persuasive assistance in Salt Lake City and other locations. Moreover, here is your guide on why it’s worth hiring a lawyer to help you when your car lender repossesses your vehicle.

Why Vehicles are Being Repossessed

Signing document car loan

When you take out a loan to buy a vehicle, you typically sign an agreement that provides the lender with a guaranteed interest in the vehicle. Depending on the arrangement of the contract and state law, the lender might be able to take the vehicle away from you — repossessing the vehicle. They can do that without necessitating a trial proceeding. Why do lenders do that? It’s because of these reasons:

  • You failed to pay or you made late payments for the car.
  • Purchasing car insurance doesn’t fit your budget.

Each state in the US has its own procedures and directives about repossessing the vehicle.

You Have an Edge if You are in the Military

When you’re on active duty, a legal expert can provide you with the knowledge about all of your rights under the state law. That said, your lender won’t be able to repossess your vehicle, according to the federal Servicemembers Civil Relief Act or SCRA. Your lender needs to obtain a court order before taking your car if have any of these situations:

  • You are on current military calling
  • You had the loan contract prior to going on military responsibility
  • You accomplished the initial payment or at least the deposit before you embark into active (military) duty

When is the Right Time to Hire a Legal Expert?

If you do not meet the terms of your loan contract — failure to pay off the loan on time, you are defaulting your loan. It brings an adverse effect for both the borrower and the lender. As a borrower, if you missed the payment, you are putting your credit score at risk.

On a side note, there are some instances wherein some lenders repossess vehicles wrongfully. This happens when the lender is not fully aware of the state laws. For example, the lender took your vehicle because you were two weeks late of taking care of your loan payment for the month. It’s unlawful for the lender to do such action if your state law dictates that you are not in default if you are fewer than thirty days on a disbursement.

Some lenders commit this mistake because they focus more on the agreement, primarily if the contract doesn’t provide with a grace period for late payments. Moving forward, things may come up and you may need to change your due date. Other borrowers are being advised to move their due date earlier to lower the total interest to pay. If there’s a human error in inputting the data in the system, it becomes a burden on your part.

How to Avoid Repossession

Woman holding car keys while in car

Other borrowers opt to permanently move their payment due date to find a way that works best for them. This way, paying their car loan is not at the same time as when they pay other bills.

If you need to delay your car loan payment, it’s important to contact your lender, preferably three days prior to the due date. Have your bank information ready to process everything smoothly with your lending company.

Hiring a legal expert can help you adequately in resolving issues linked to vehicle repossession, such as the circumstances mentioned above. You can always find a trusted attorney for your utmost convenience and peace of mind.

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