Was Your Vehicle Repossessed Against Your Rights?

Short-term financial troubles can happen to almost anyone. When payments fall behind, the phone may start to ring, and, eventually, property may be repossessed. Fortunately for Connecticut’s consumers, state law provides many protections in the event of repossession.

With respect to repossessed household goods, Connecticut debt collection statutes regulate the manner in which Rent-To-Own companies may go about repossessing property. The use of threatening language or conduct, for example, is not allowed.

With respect to repossessed vehicles, repossessions are very frequently a result of a consumer’s decision to stop paying for a car that never ran properly or where there was fraud committed by the automobile dealer. No matter the cause, however, statutory protections exist to provide consumers with an opportunity to prevent the loss of their car, to prevent finance companies from taking advantage of a consumer’s default, and to ensure that the consumer is credited with the fair value of the car.

Before repossessing a car, a finance company is allowed, but is not required, to send a notice of the amount the consumer must pay and the deadline to make that payment in order to prevent repossession.

This notice must be hand-delivered or sent by certified or registered mail at least ten days prior to the deadline to make payment. Many finance companies do not give consumers the full ten days, and, as a result, may violate the law even if they wait beyond the deadline to repossess. If a notice is not sent before the repossession, then a notice must be hand-delivered or sent by certified or registered mail not less than three days after repossession. That notice must inform the consumer of the right to redeem the car by making the past-due payments owed plus repossession and storage fees within fifteen days from the repossession. If this notice is not sent, then the finance company is not permitted to charge repossession or storage fees. The vehicle must be kept in Connecticut during that time period.

Notice of the date after which the sale will take place must be given to the consumer. If the sale is by public auction, then the notice must state when and where the auction will be held. If the car is being sold pursuant to a private sale, then the notice must state the date after which a private sale might be conducted. All aspects of the sale must be commercially reasonable.

No later than thirty days after the sale, the finance company must give the consumer notice of how much the car sold for. In the notice, the finance company must give the consumer credit for the sale price or the fair market value of the car, whichever is greater. The finance company may deduct its expenses incurred in the sale, but it must give a full accounting. This is also an area where finance companies frequently fail to comply with the law.

The consequences of violating repossession laws can be very severe for finance companies. The consumer is usually entitled to a presumption that the value of the car was equal to the amount of the debt. This presumption often deprives the finance company from recovering any deficiency. Additionally, the consumer is entitled to recover for any loss or damages due to the violation of the repossession laws.

Even if there are no actual damages, the consumer can recover statutory damages. The amount of statutory damages will depend upon the circumstances of the individual case and other factors such as the amount that has been paid on the loan, the original amount borrowed and the amount of the finance charge.

Frequently Asked Questions About Vehicle Repossession

Since 1997, we’ve been helping Connecticut residents protect their rights in vehicle repossession cases. Here are answers to common questions about vehicle repossession rights and procedures.

What steps should I take if I receive a repossession notice?

If you receive a repossession notice, act quickly. First, carefully review the notice for the payment amount and deadline. Document everything, including when and how you received the notice. Contact your lender immediately to discuss payment arrangements or potential loan modifications. If you believe there’s an error or the repossession is wrongful, contact a consumer law attorney right away.

Remember, you typically have 11 days from receipt of the notice to make arrangements before repossession can occur. Keep copies of all correspondence and take detailed notes of any phone conversations with your lender.

Can a lender repossess my vehicle without notice?

While Connecticut law allows lenders to repossess vehicles without prior notice, they must send you a notice within three days after repossession. This post-repossession notice must inform you of your right to redeem the vehicle within 15 days by paying the past-due amount plus any legitimate repossession and storage fees. If the lender fails to provide this notice, they cannot charge you repossession or storage fees. The notice must be delivered by hand or sent via certified or registered mail.

What are my rights during the repossession process?

You have several important rights during repossession. The lender must conduct the repossession peacefully without threats or force. The vehicle must remain in Connecticut during the redemption period. You’re entitled to receive notice of the sale and have the opportunity to redeem your vehicle before it’s sold. The law requires the lender to sell the vehicle in a commercially reasonable manner and provide you with a detailed accounting of the sale within 30 days. Any violation of these rights may entitle you to compensation.

Can I get my vehicle back after it’s been repossessed?

Yes. You typically have 15 days from the repossession date to redeem your vehicle by paying the past-due amount plus any legitimate repossession and storage fees. The lender must keep the vehicle in Connecticut during this period. If you believe the repossession was improper or the fees are excessive, a consumer law attorney can review your options for recovering your vehicle. It’s important to act promptly within the redemption period to protect your rights.

What do I do next if my vehicle or property was wrongfully repossessed?

It is critical to act swiftly. As quickly as possible:

• Review your loan or lease agreement to determine if you were actually in default and whether proper notice was given.
• Gather as much documentation as you can, including your contract, payment records, notices, photos and any written communications with the lender or repo company.
• Document any illegal conduct by the repossession company, such as their entrance into a locked property or garage, damage to your other property or repossession despite bankruptcy protections.
• Contact your lender to initiate a dispute and make sure that you take note of their stated reason for the repossession.

Finally, talk to an attorney as soon as you can. There may be a short deadline in which to challenge the repossession and recover your vehicle or property. Do not engage in “self-help” options, since that can create safety risks and create legal issues for you.

Can a repossession agent repossess my vehicle while it is in my garage or private property?

Typically, repossession agents can access private property if no deterrents or obstacles are preventing them from doing their job. Connecticut repossession laws prohibit repo agents from entering a closed garage, breaking locks, forcing entry or causing property damage to access vehicles. Threats of violence or physical violence are also prohibited.

Keeping a vehicle in a garage or on private property may temporarily prevent repo agents from repossessing the property. However, this is not a legal solution and can violate a contract. A lender may fine you for hiding a vehicle and may seek court permission to eventually enter the property and reclaim the asset.

How do I get my vehicle back after repossession?

You may be able to reverse the repossession by paying what you owe, plus the cost of any charges for the repossession itself, but only if you act quickly. First, contact the lender and ask what procedure you can follow to reclaim the vehicle. Second, talk to an attorney who is experienced in repossession law to better understand your rights and to obtain help with your negotiations.

Contact The Firm

For an assessment of your potential claim call Consumer Law Group, LLC at 860-924-7556 or use the email contact form to arrange a consultation.