When it comes to a vehicle being repossessed, there are many factors that can complicate the situation including state and federal laws. Below are five tips to deal with repossession in Massachusetts.
1.) Swift Action
By Massachusetts law, car lenders are only required to hold a repossessed vehicle for 20 days. After this, they are free to sell the vehicle. If the selling price of the vehicle does not cover the amount you owe, the lender can request the remaining balance from you. In order to have a chance of getting your vehicle back, you must act within these 20 days and avoid delay.
2.) Communicate with Your Lender
Contact your lender as they are most likely willing to work with you. They are legally allowed to ask for the entire loan balance plus the cost of repossession which is likely unaffordable to many consumers. Some lenders may be willing to accept the past due amount and repossession costs to release the vehicle back to you.
3.) Chapter 13 Bankruptcy
Keep in mind that Chapter 7 and Chapter 13 bankruptcy are not the same. Debtors in Chapter 13 can retain possession of their property but not so in Chapter 7. If you file for a Chapter 13 bankruptcy a lender may ask for proof of insurance for the vehicle before releasing it back to you. You may need to contact an attorney if the lender refuses to cooperate with you.
4.) Verify the Legality of Repossession
In order to repossess a vehicle, a lender must follow several steps to be compliant with the law. The lender must provide a written notice at least 21 days before the repossession. The notice must include the amount you owe to bring the loan current to stop repossession. The lender is only required to send you this notice 3 times. If you’ve been late on payments before and have gotten this notice you may not receive it a 4th time before they repossess your vehicle.
Lenders cannot breach the peace. This means that the repo agent cannot use forceful tactics, coercion, or threats against you or your property. If a breach of the peace occurred you are entitled to an amount that is at least the finance charge for the car loan plus 10 percent of the principal amount.
5.) Seek Additional Assistance
You can file a consumer complaint with the MA Attorney General’s Office or call an attorney specialized in this field for more information.
File a consumer complaint: https://www.mass.gov/how-to/file-a-consumer-complaint
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