How bad does a repo car hurt your credit?

A repossession can stay on your credit report for up to seven years, making it harder for you to qualify for other loans. Repossessions have a severely negative impact on your credit and can show lenders that you may not be able to make payments on the property you purchase.

What happens to the balance on a repossessed car?

After the sale of a repossessed vehicle, the lender may choose to collect the deficient balance through a collection agency or collection law firm. The borrower may receive collection calls or letters demanding payment. Collection contact must comply with the federal law called the Fair Debt Collection Practices Act.

What happens if I don’t show up in court for a repossessed car case?

You may choose to represent yourself, pro se, or hire an attorney to represent you. If you do not show up in court, the case will proceed without you and a default judgment could be entered against you. This means that a judge has ruled against you in non-criminal court, and you will be required to pay the damages or judgment amount.

What to do if you get sued by your auto lender?

If you receive a summons from the court you must contact the court to let them know of your plan to defend the matter. You may choose to represent yourself, pro se, or hire an attorney to represent you. If you do not show up in court, the case will proceed without you and a default judgment could be entered against you.

Is there a law firm that can help with repossession?

Flitter Milz is a consumer protection law firm experienced in representing consumers who have suffered from vehicle repossession, abusive collection contact, judgments from auto loan deficiencies and credit reporting errors listed by auto lenders. Contact us for a free consultation and to find out how we can help you.

What happens to my car if it is repossessed?

If your car is repossessed, then the creditor will probably sell it at auction. However, if the amount of the sale is less than the balance of your loan, you can be sued for the deficiency. To defend yourself, you should try to find errors that the lender made when giving you the loan or when selling the car.

Can a creditor Sue you for a repossession?

The creditor sold the car to friends or family. This is not commercially reasonable. The creditor didn’t sell the car. If the creditor decides to keep the car, then your debt is fully satisfied and you can’t be sued. The creditor made a private sale when most repossession sales in your area are handled by auction.

How to defend yourself in a car repossession deficiency claim?

Be sure to document the repossession. Videotape it, if possible. You should also take pictures of any broken locks or damage done to your property during the repossession. At a minimum, write down your memories of the repossession. Did the lender confront you? What was said? Were threats made?

Can a counterclaim be made in a car repossession?

As counterclaims, you can raise any deficiency in the repossession process. For example, if the lender breached the peace in retrieving your car, then raise that as a counterclaim. Also point out any deficiencies in the notices you were given or in the manner of sale of the car.