If you have missed a payment on your vehicle, your finance company can repossess your vehicle, even if you are only a day late. Your credit contract may have other terms that can trigger a default, like failing to maintain insurance on your vehicle. The creditor does not need a court order, and they can take the vehicle from your driveway, or any other place where they find it. There are no limitations on when the creditor can repossess. In fact, many creditors will repossess vehicles in the middle of the night, because there is less of a chance that a consumer will be awake to object.
No. In some states, creditors must give the consumer a notice before repossessing a vehicle. This is not true in Michigan.
No. Creditors can only repossess the vehicle if they can take it without “breaching the peace.” Breaking into a locked building or yard is a breach of the peace, and the creditor cannot enter if they have to damage your property to do so.
If you object, the creditor must stop the repossession and go away. If they are on your property, you can ask them to leave.
The creditor will sell off you’re your vehicle to pay the outstanding balance of your credit contract. They can do this at either a private sale or an auction. Most often, creditors will conduct an auction. No matter what manner they choose to sell your vehicle, the creditor must give you a notice of the sale and tell you when it will occur.
If the sale does not result in enough money to pay off your loan, the creditor can send the balance to a debt collector or sue you. But, if the sale results in a surplus, the creditor must pay that money to you. In many cases, there is no surplus and the creditor will demand that you pay the outstanding balance.
Even if the creditor doesn’t send the matter to a collection agency or sue you, they can put the balance on your credit report.
The statute of limitations on such a suit for a vehicle is four years after default.
Michigan law requires companies who repossess vehicles to prove that they act reasonably when they repossess and sell a vehicle and try to get the best price possible for the vehicle. If they fail to prove that they have done this then the creditor waives any deficiency, and the consumer owes no balance.
If you have been sued for a deficiency on a repossessed vehicle, Lyngklip & Associates can help you prove that the creditor violated the law by failing to get the best price for the vehicle.
Lyngklip & Associates will defend your repossession case on a contingency basis. This means that we only get paid if we win, and we will take our payment out of any recovery we get for the creditor’s violation of the law.