A friend of mine had her car repossessed. Read below, but is what the creditor did legal?

Question

According to her, he kept calling her (which I don't doubt... I was present for a lot of her phonecall), and he was threatening to have the police take her to jail for theft.

Now, from what I understand, there's no such thing as a debtor's prison, however, the car wouldn't start, so, she couldn't get it back up to the dealership (which at least would have been listed as a voluntary repossession). Under the fair debt collections act, was the man who called her within legal limits in threatening her and her family that they would go to jail unless they got the car?

She knew that the car was going to get repossessed... She was just trying to find a way to get it back to the dealership so that it wouldn't look so bad.

They scared her and her family, though, and her mother told them where she was living.

Her mother, though, recorded the conversation so that she could show it to my friend. I want to know, though, if there's anything that she can do, though, due to the fact that they have that recording...?

Answer 1

You seem to think the lender cares whether he repossessed the car from her home, or the dealership. It doesn't matter to the lender where he picks the car up from. If she cooperated, did not conceal the car, and gave the keys to the repo agent, then it should be coded as a voluntary surrender, rather than a repossession on her credit. I make loans for a living, and it really doesn't matter how it's coded though.

If you really have tape of the collector threatening prison, then you have a claim for violation of the Fair Debt Collection Practices Act.

The applicable section (Sec. 807) reads:

A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

(4) The representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person unless such action is lawful and the debt collector or creditor intends to take such action.

Again, if you really have this tape, then you should have no problem finding an opportunistic attorney to pursue the deep-pockets lender (just google "unfair debt collection") The Internet is teeming with them. Good luck!

Answer 2

I know of a friend too who had their car repossessed. Found out that in the contract that was signed that if you didn't make a payment right away they could come and take the car back. Not all loanors have that in the contract. So they are in their rights to come at any time and wherever the car is to take it. About the threats, I'd think you could turn them in to the state's attorney general, however it may be illegal to tape record a phone conversation without first advising the other party that you were tape recording them.

Usually when the loanor takes their car back they will clean it up and sell it for what they can get out of it, usually they will take the lowest bid, and then bill the person who signed the contract for the balance of the loan plus cleaning costs and repair costs if repairs were needed. Then if the person doesn't pay the balance the owe it first goes to a collection agency and then winds up on the credit report (whether or not it is paid).

Answer 3

jeff, I hate to have to tell you this but your screwed. And in a pretty big way. To start with the banks going to go after whoever can or will pay the balance due and believe me the balance is going to stagger you. They're going to add legal, repo costs and storage to the balance of the loan. By law they'll auction it off but at best it'll go far below it's true, normal wholesale value simply because by the time it gets to an auction block it'll have been towed, very poorly handled, possibly even damaged, ransacked or have parts removed and not cleaned and dirty. If you don't pay they'll ruin your credit, get a judgement and they'll just sit back and wait until either or both of you come into money and they'll be there with their hands out and if the amount you end up owing after the auction is staggering wait until you see the amount a few years of a judgement collecting an absorbitent amount of interest will cost you. About the only legal recourse you can give a try is sueing your ex, but the chances of your winning and than collecting are slim to none. The banks will never let you off the hook, especially now that you both defaulted on the loan, which by the way is now and has from the time you co signed, basically your loan. Depend on their coming after you. It's only hers if she pays. And if you do go to court, even if you win it'll be almost impossible to collect and if niether of you pay your credit will be shot no matter what. The other thing is if you everr want to finance a car, the meer fact your credited with a repo will kill any hope of that happening. Loan companys will tolerate just about anything but a bankrupsy or a repo. No s_ _ t,..A credit company would be more forgiving of your shooting their rep guy than your cars being repossed. Sorry to have to tell you this.

Answer 4

Creditors do this to people all the time. They think they are dealing with a brain dead, deadbeat, so they can use whatever tact they deem necessary to recover the property in question. Many times the original creditor will sell the bad paper to a collection agency, and let them go after the deadbeat. In this way, they recover some of their money, but leave the headache of collecting to the collection company.

Collection companies use some pretty outrageous tactics to recover their money, but legally, I don't believe they have a leg to stand on.

So. if and when you are being bombarded by a collector, and you realize that's all he or she is, tell them, the only way they will ever collect on you, is in small claims court. That, they do not want to hear. Court is the death knell for collection agencies. Remember, each time they call stay with the small claims court theme, eventually, they will simply give up!

Answer 5

Yes, I think he was within his limits. If she defaults on the loan, the car is no longer belongs to her, and if she doesn't surrender it, she is stealing it. If it didn't start, she should have it towed. Maybe she look at the creditors side if the issue, he risked his money and gave her a car she agreed to pay for, and failed to live up to her end of the contract. She is not the victim, the creditor is.

Answer 6

No they can not threaten you, but even if you prove they do, little would be done, And no one should even beleive it, everyone knows not paying bills is not criminal.

But the deal is, she did not pay for her car, and yes no matter what bull or lies they said to try and collect, that can not stop the repo, only paying.

So you can report them, most likely they will get a stern warning letter.

Answer 7

He doesn`t have the right to call and harrass or threaten, he does have the right to call and discuss payments. He is within his rights to repossess the car by having it towed away.

Answer 8

No. That was out of bounds, and should be reported both to appropriate credit-reporting authorities (state Attorney General) and to the police.

Answer 9

You do not own the car. He does. Technically, it is a rental. You kept possession of it. That is theft. He could have had you arrested.

Answer 10

No. Threats of criminal prosecution for a debt is against the FDCA.