Whatare my rightsif my car has been repossessed due to missed payments?

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Whatare my rightsif my car has been repossessed due to missed payments?

I purchased a van about 5 months ago from a buy-here pay-here lot. I put $2000 down on it and signed a contract to pay $199 a month for 12 months until paid. I missed a payment and he repossessed my van and told me that I had 8 days to come up with all the money owed on it or he was selling it to somebody else. I paid $2600 on this van in 5 months and don’t want to lose this money. However, he said he refuses to give it back until he has full payoff up front. I read over the contract thoroughly and it says no where in that he can do that. Need to know what to do?

Asked on August 26, 2010 under General Practice, Kentucky

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Ok, you need to read the agreement again.  It is my understanding the Kentucky law allows a party to do so for a "secured" loan - a loan that has collateral such as a car, but only is certain conditions are met.  The agreement - which is a contract - has to say specifically that the creditor kept a "security interest" in the car. Second, the creditor's security interest (or lien) must be listed on the car's title. The title, with the lien, must be recorded with the local county clerk. If all those conditions are met then the creditor can send a tow truck to pick up the car but the tow truck driver must not in any way "breach the peace," which means without using force, the threat of force or violating any Kentucky trespass laws. You have rights too. You have the right to get back any personal possessions left in the car at the time of repossession, you have the right to receive a notice from the creditor that sets forth the amount of money you owe and/or  must pay to get back the car and the creditor must provide notice whether or not he plans to resell the vehicle or keep it. If the borrower has paid 60 percent of the car loan, then the creditor must sell the vehicle before the expiration of 90 days. If the lender wants to keep the vehicle, then they must accept the vehicle as full satisfaction for the loan and cannot go after the borrower for a deficiency judgment. Finally, the borrower has the right to redeem the vehicle by paying all monies owed up until the time of any resale.

Good luck.


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