Car Repossession Laws
Understanding car repossession laws is important for anyone who has fallen behind on automobile payments and is in danger of losing the vehicle. Whenever a vehicle is purchased using some type of automobile loan, a borrower is entering into a contract with the lender. As long as the borrower is making regular monthly payments, and those payments are on time, there should be no problem. However, failing to keep up with these payments may result in the loss of the vehicle. The automobile itself serves as security for the loan. This means that the lender has every right to take possession a vehicle if the borrower is not living up to their promise to pay back the loan. Moving forward with the seizure of an automobile can frequently be done without a lender needing to go through the courts or even let a borrower know ahead of time that the car will be repossessed. That is not to say that there are not some limitations on what a creditor can do in these cases. Such limitations will vary from state to state. For this reason, a debtor should make sure that they understand how car repossession laws are applied in their state. Some good sources of this information may include a state consumer protection agency or even a privately hired attorney.
In addition to understanding car repossession laws, there may be other steps that a debtor can take when an automobile is in danger of being seized. If the borrower is still in possession of the vehicle, but is behind on monthly payments, they should contact the lender right away. It may be that the loan company will be willing to work out some kind of new payment plan, if for no other reason than to avoid the hassle and paperwork involved in taking possession of the automobile. An entirely new loan may be able to be negotiated. Or, a consumer may be able to sell the car themselves and use the proceeds to pay off the outstanding loan. If a vehicle has already been seized, it is important to take quick action. By making full financial restitution on any money that is owed, a borrower can generally get the vehicle back. There will also usually be additional fees that are charged for the storage and repossession of the vehicle. A debtor will also need to show proof of insurance and a valid driver's license. However, car repossession laws will also give the lender certain rights in these proceedings. Should it be discovered that a debtor has hidden the vehicle to avoid having it seized or vandalized or deliberately damaged the automobile in any way, the loan company has every right to refuse to return the vehicle. The same applies if the borrower has used the vehicle to commit a crime. If any lies on the part of the borrower are discovered on the credit application, this is also grounds for refusal to return the vehicle.
There are also several rights that are granted to lenders under car repossession laws. If an automobile has been seized two times within the past year, a finance company can refuse to return a repossessed car regardless of what a borrower may offer to do. When a borrower has experienced three repossessions on the same vehicle, the lender is also under no obligation to return the automobile. At a certain point, a defaulting debtor will need to face the fact that the vehicle is gone for good and there is nothing that can be done. In most cases, a debtor will not know that their vehicle is about to be seized. There may be personal property that was inside the car when it was repossessed. The company that seized the car is legally obligated to send the debtor a list of items that were in the vehicle at the time that it was seized. In addition, information on how to claim this property will be included in this communication. According to car repossession laws, a debtor has 60 days to pick up the items. If they fail to do so, the company that seized the automobile may dispose of the items in any way they choose.
In most cases, car repossession laws allow an automobile to be repossessed at any time of the night or day. Representatives of the repossession company are permitted under the law to come on to private property for the purpose of seizing the vehicle. However, physical force, or even the threat of it, is not permitted. Removing the automobile from a closed garage may constitute a "breach of the peace" on the part of the seizing agency. The legal definition of the term "breach of peace" may vary from state to state. The Bible explains that the words of the righteous are important to God. "The thoughts of the wicked are an abomination to the Lord: but the words of the pure are pleasant words." (Proverbs 15:26)
A lender may also resell the automobile in an attempt to recover the defaulted debt. Under car repossession laws, a lender must notify the debtor that the car will be sold at least 15 days prior to the actual sale. This document is called a "notice of intent to sell vehicle." The borrower will also be told exactly how much money they will have to pay in order to get the vehicle back. When a lender is requiring payment in full from the defaulting borrower, they must explain why this is the case. Should the debtor still owe the lender money after the car is sold, this information must be disclosed at this time.
Consumer Debt SettlementConsumer debt settlement offers a way for borrowers to reduce or eliminate unsecured obligations through negotiations with credit card companies and other personal credit lenders. If one carries heavy, unsecured obligations through charge accounts and other personal loans, there are many settlement companies that can help in a legal and productive manner. Consumer debt settlements can be accomplished by professional sources found online. A consumer debt settlement has become a favored alternative for many Americans who have outstanding personal obligations and are unable to meet their repayment amount.
Most Americans who are considering consumer debt settlements, find they are in excess of $10,000 of unsecured debt through credit card charges alone. An overwhelming number of households are paying between 18% and 24% finance charges on charge accounts and resorting to paying the interest charges each month without touching the principal. A consumer debt settlement option may provide the relief needed. For those who are having financial hardship through many unforeseen circumstances such as illness, divorce or job loss, using an agency can provide a welcome relief. "Behold, thou desirest truth in the inward parts: and in the hidden part thou shalt make me to know wisdom" (Psalm 51:6). Ask God for wisdom and guidance concerning money matters.
Companies, law firms and non-profit agencies offer options for personal, financial solutions. Some alternatives include consolidation loans and restructuring a household budget. But for those who need crisis management, debt settlements are a way to pay off all financial obligations and begin to repair credit history without filing for bankruptcy. A competent, credit counseling company can provide a professional arbitrator who can negotiate with lenders a reduction of overall obligations for pay off. Sometimes securing as much as a 60% overall debt reduction, meets the lender's requirements.
Sometimes, if one is unable to agree to repay up to 85% of a consumer debt settlement, credit card and other lenders will agree to report a balance with them "Paid as Agreed." This will clear up one's credit report instantly and credit history can be repaired. Consumer debt settlements that are negotiated for less than 85% are harder to negotiate a positive pay off status, however not impossible. A proficient arbitrator may sometimes be able to negotiate an agreement for a "Paid as Agreed" pay off status for a less percentage, depending on the lender's willingness. These solutions can be effective because most lenders are happy to receive some pay off as opposed to nothing.
A personal debt consolidation loan is a loan that will allow a borrower to consolidate all of their unsecured credit card debt. With such plans, the borrower can begin to payoff excess borrowed monies in an easy and simplified manner. This borrowing option gives the consumer the advantage of taking control of payments and managing excess debt, and personal debt consolidation loans will bring the peace and stability that having financial freedom can bring, free from excessive borrowed funds. There are several avenues to pursue with this lending option, and the consumer can begin researching the options online via the Internet.
Credit card balances have reached an all time high among Americans, and this is leading to an entangled web of transferring from one card to the next to make "payments". However, the overall balance never goes down or gets paid off. There are many reasons that a consumer can be in the desperate financial position to commit their future earnings with a charge card. Some of those reasons are unexpected and expensive situations such as death in a family, a loss of a job, or a medical emergency. However, many times, the problem is simply a matter of uncontrolled spending habits for things that each family member wants or thinks they need. A personal debt consolidation loan can be the answer to a family's debt problem. Whatever the reason for excessive borrowing, the high amount of overcommitment decreases cash flow and makes it difficult to pay for everyday living expenses. With personal debt consolidation loans, the borrowed amounts are much more manageable and living on a day to day basis can become easier without the stress of being behind on bills.
With the assistance of this financial recovery plan, the consumer secures a loan from a personal debt consolidation loan company, and pays off the personal credit card balance. The lender generally offers a much lower interest rate than the charge card interest rate. By combining the multiple debts and making one payment monthly, the consumer can save thousands of dollars on finance charges while tackling the principal balance with a new vengeance to rid the burden from their lives. Also, with personal debt consolidation loans, there will be positive activity reflected on a credit report, possibly raising the credit score. Getting this assistance can really get consumers started in the right direction on a permanent basis, taking responsibility for borrowed money and managing the use of credit correctly.
When facing financial issues and considering a personal debt consolidation loan, debtors can become overwhelmed with the stress and urgency of the situation. God cares about our financial situations as well as our spiritual lives. "Casting all your care upon him; for he careth for you." (1 Peter 5:7) Pray and seek the guidance of the Lord, and he will make a way to securely take care of excessive borrowing.