Are there limits on the storage fees repossession agents can charge?

Answer 1

To the best of my knowledge there is no limit. This is their way of robbing people and unfortunatly the city usually just wants the car MOVED so they don't crack down on the fees the companies that move the cars charge. The finance company that has it repo'd pays them to tow it and allowing them to rob you keeps their costs down they have to pay the tow company also.

in the state of Virginia-each jurisdiction has a towing board made up of tow company owners and public officials that regulate what towing companies can charge for towing/impounding/storage/accident recovery/etc. and also how far your car can be taken when impounded or towed. you should check with your local police or sheriff office to see if the repo company falls under their jurisdiction as far as storage costs go when repossession is involved

Depends on the state the vehicle was picked up. To the best of my knowledge most states do not regulate this. One of the reasons for high storage rates by the recovery agency is many finance companies are asking for free storage unless the debtor redeems the vehicle. The repossessor can't afford to pay for his lot or garage without collecting storage from someone. Plus there is the additional burden of insurance while the vehicle is being stored. The average deductible for repo insurance is $1000.00 to $1500.00. for each claim. You also have the costs for security and lot attendants who not only release the vehicle but must do all the paperwork for the finance companies.

I know you don't like to hear this but the fact is many agencies are now losing money when it comes to total cost of storing the vehicles. This could all be resolved if the finance companies would quit placing the burden on the recovery agency and added all to the original repossession fee. In their attempts to hold down their own costs they are forcing the recovery company to sign unfair contracts in the first place. Strange as it may seem almost every major lender has almost the same contract and the recovery eithers signs this or has no work.

Answer 2

Most financial contract are written with allowing for this and other fees to be charge when the loan is in default. Read you contract line for line and have an attorney explain anything that is not clear.