There are over 1.2 trillion dollars of outstanding automobile debt in the US. As a result, many economists are anticipating an upcoming bubble similar to the subprime mortgage crisis that hit in 2009. With more than $23 billion in vehicle loans at least 30 days old, the current rate of pending default is higher than ever.
Under Florida law and depending on the contract you signed, if you are as little as 30 days past due on your car payment, you may be subject to having it repossessed without any notice. This includes situations where your debt just got out of hand, and you can no longer afford your car payment, or an unscrupulous dealer approved you for a car loan that was beyond your means to keep up with.
Statistics About Repossession
Statistically, 9 out of 10 adults use their cars to and from work. As a result, you are having your vehicle repossessed, or the threat of repossession is hugely stressful. Unfortunately, no formal judicial process is required to repossess a car in Florida, and no legal requirement to be notified before your vehicle is repossessed. Nevertheless, several laws that are often broken need to be adhered to, and several options are available if your car has been repossessed.
Automobile repossessions in Fort Lauderdale often occur unlawfully, and our team of attorneys is well-versed in all the laws about it.
Some of the laws that are frequently broken while carrying out a repossession include:
Recovery Agent
Any individual that performs repossession services in Florida must have the proper licensing. However, licensing may be denied due to criminal history, mental illness, or the inability to show good moral character. Frequently, the people conducting the repossessions, especially in such a hotbed for automobile repossessions in Fort Lauderdale and Miami, either need the proper licensing requirements or have had their licenses expire. At Loan Lawyers, our Fort Lauderdale auto repossession lawyers have seen all types of red flags when looking into the backgrounds of recovery agents.
Recovering Agency
In addition to the Recovery Agent, the Recovering Agency they work for must also maintain valid licensing with Florida.
Breach of the Peace
Licensed recovery agents are lawfully permitted to repossess automobiles only provided there is no peace breach. Countless stories abound of rogue repo men that have threatened harm, used violence, broken personal property, repossessed cars with children still inside, and even killed people during repossessions. Recovery agents are forbidden from carrying a firearm while carrying out a repossession, even if they have a license to do so. In the event of a confrontation, they are required to retreat.
Personal Property
All personal property must be ultimately and accurately accounted for. Within five working days after repossession, the debtor must be provided with written notice of the location of their items and the procedure for claiming them. Furthermore, the debtor must be notified by mail (with proof of mailing or certified mail) of the intent to dispose of their property at least 45 days before the disposing of personal property.
Notification of Sale
At least ten days before the sale, the lender shall notify the borrower of the deal’s date, time, and place and provide them with a written accounting of the amount due on the loan. The lender must permit the borrower to pay whatever is owed and redeem the vehicle before its being sold. Furthermore, the borrower is allowed to purchase the car at the sale.
Commercially Reasonable Sale
Since the borrower is ultimately liable for the amount due on the loan, it is forbidden for the lender to sell the vehicle at an unreasonable or far below market value. Unfortunately, at times repossessed cars are sold at rigged auctions where the prices paid are substantially lower than what the car is worth, resulting in the buyer being stuck with a deficiency judgment for the difference in the amount owed. This practice is commonplace and illegal.
Excess Proceeds
If the vehicle gets sold for more than what the borrower owes, all of the additional proceeds must be returned to the borrower within 30 days of the sale.
In addition to the above, it is expected that the purported car lender is no longer entitled to enforce the loan. Like the subprime mortgage crisis 2009, almost every single auto loan in the US has been securitized, packaged, and sold off on the secondary market. Therefore, people repossessing your car may not be entitled to do so.
Contact Our Fort Lauderdale Auto Repossession Attorneys
Contact us and speak with our Fort Lauderdale car repossession attorneys if you feel your car was repossessed unlawfully. Our automobile repossession lawyers in Fort Lauderdale have the skills and experience to help you regain your vehicle.
What makes Loan Lawyers unique amongst most consumer law firms is that where others often rush to put their clients in bankruptcy, we use default strategically and only as a last resort. As a result, we have been able to help thousands of clients with debt relief and even recover money due to violations of state and federal law without the need to file bankruptcy.
If you have fallen behind on your car payments and are worried about your car being repossessed or if your vehicle has already been repossessed, call Loan Lawyers today at (844) 344-4813 to schedule a free consultation with one of our experienced attorneys to find out what your rights are and how we may be able to help you. We serve clients throughout Miami, Fort Lauderdale, Palm Beach, and South Florida.
