What are my rights when a car lender reposeses my vehicle?

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What are my rights when a car lender reposeses my vehicle?

I got a car title loan 3 months ago. For 2 months in a rowIi paid them an interest only payment of $150 a month. The loan was for $500. I missed this month and they came and took my car. Now I am told that I owe $1200+ to get my car and I have 10 days to pay it or my car will be auctioned. Also, the inexperienced tow truck drivers that they sent to get my car came in a hook truck only and they didn’t bother to use the key and they hooked my car in the rear and **** it out of the driveway into the street with the steering column locked untilIi heard the noise and went out and told them to stop.

Asked on August 20, 2010 under Bankruptcy Law, Arizona

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

A car lender and a title loan lender are two separate types of lenders.  Your title loan lender is allowed to use your motor vehicle's title as security for you to pay back the loan.  The contract is usually quite long and in it contains provisions that discuss the possibilities that can occur if you fail to make a timely payment.  An untimely payment can result in an immediate repossession of your motor vehicle and the right of the title loan lender to repossess your vehicle.  You may wish to contact your state's department of financial institutions and see if anything can be done on your behalf.  Otherwise, not only would you be responsible for payment of that loan but if the car is auctioned off and the car doesn't pay off the entire loan, you may be held responsible for the deficiency amount. 


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