Can a finance company charge investigation fees for a repossession if the repo never actually happened and I paid my balance in full?

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Can a finance company charge investigation fees for a repossession if the repo never actually happened and I paid my balance in full?

Asked on February 29, 2012 under Bankruptcy Law, California

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

It can if you contracted to be responsible for those fees during any time the company had to contract with such a company due to your nonpayment or delayed payment. So the general answer is yes but you may wish to contact the company and try to negotiate the amount.

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

Whether or not your lender is entitled to charge you an investigation fee with respect to a repossession concerning the vehicle that you were making payments on depends upon what the loan agreement that you signed states. As such, I recommend that you carefully read the loan agreement for the vehicle that you paid off. The agreement will state what charges the lender can contractually charge you concerning the vehicle you are writing about.


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