Repossession is the process by which a creditor reclaims property from a debtor when they fail to keep up with their payments.
When purchasing a vehicle on credit, the creditor retains rights to the property until the debtor pays in full, also known as security interest. State laws and individual contracts determine the extent of a creditor’s security interest.
Repossession is a form of reclamation and is most utilized in conjunction with automobile loans. If the debtor defaults on their loan, the creditor can legally repossess the property outlined in the loan agreement.
Wrongful repossession of a vehicle
Wrongful repossessions can happen to anyone. If your car has been wrongfully repossessed, having a copy of your loan agreement, documentation of your payment history and proof that the creditor repossessed the property is key.
Your loan agreement identifies whether the creditor had a security interest in the property and the circumstances that allow for repossession. Your payment history will indicate whether you were in default on the loan. Together, this information will determine whether the creditor had the legal right to repossess your property. If the creditor did not have the right to repossess the property but did so anyway, then a wrongful repossession likely occurred.
What to do if you’ve been the victim of a wrongful repossession
If you have been the victim of a wrongful repossession, then you may have the right to sue for damages. Your potential damages depend on the specific circumstances of your case, but there are a few common types of damages.
Additionally, you may be able to receive statutory damages for the act of wrongful repossession. You also may be eligible for property damages if your property was harmed during the repossession. Finally, consequential damages if the repossession hurt your credit rating or impacted your ability to keep your job. For these reasons, it’s important to understand why a wrongful repossession has occurred and take steps to protect your rights.
Representation for Wrongful Repossessions
Losing your vehicle to repossession can be frightening and stressful. Sadly, wrongful repossession is a problem that consumers throughout North Carolina routinely face. Without a vehicle, it may be difficult to get to work, school, or to run basic errands.
Dealing with creditors and repossession companies can be intimidating. If you believe you have experienced a wrongful repossession, contact the consumer rights attorneys at Maginnis Howard. You can reach our firm by phone at 919.526.0450 or through our contact page.