Repossession
Credit and Debit Cards
Liens

Can a lender charge repossession fees?

353637

Top Answer
User Avatar
Wiki User
2005-09-08 06:37:20
2005-09-08 06:37:20

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.

1
๐Ÿ™
0
๐Ÿคจ
0
๐Ÿ˜ฎ
0
๐Ÿ˜‚
0

Related Questions

User Avatar

In the state of California, the lender of a repossession may only charge fees that it incurs and that are in the contract. If the lender pays for the storage or houses the repossession, then yes, the lender is allowed to charge both a repossession and a storage fee.

User Avatar

If it didn't leave your driveway, then it wasn't repossessed.

User Avatar

Yes, if the lending agreement was in default and the lender found it necessary to implement collection or repossession action at their expense. The majority of financial contracts contain clauses allowing the lender to charge the borrower additional fees and penalties for, late or missed payments, collection or repossession costs, and so forth.

User Avatar

The debtor is liable for the payout balance of the vehicle less resale amount. Additionally, he must pay any repossession fees, storage fees, transportations fees, interest from the lender, and penalties. In the evnet these are not paid, the lender will have no other recourse but to sue for the balance along with court costs, and legal and collection costs and fees.

User Avatar

Not ANY, but it can vary. Most contracts just say "fees", amount not specified. Of course, 10K wouldn't stand up in any court.

User Avatar

Proof that you are you and MONEY to the lender. Plus any inventory fees for counting the mickey D's cups.

User Avatar

Repossession without judicial process is allowed if the lender has not breached peace. A lender repossessing an automobile must issue a notice to the borrower, and a lender can sell an item via public auction after repossession.

User Avatar

The lender has the option of foregoing repossession and filing a suit against the borrower for the amount owed plus interest, applicable fees and legal costs.

User Avatar

No, all that is necessary is a valid repossession order from the lender.

User Avatar

Contact the lender and make up all the past due payments plus the repossession fees.Answer:You can contact the lender, or you can contact the repossessing agency. If you contact the lender, they may allow you to make a payment arrangement. Your payments may be less or could be more than you believe you owe. When the lender contracted the repossession agency, there were fees involved. These fees will be transfered to you. The lender, however, is in most cases not as aware of the fees as they should be; they are focused on the principle and interest of the original contract. If you move quickly, the repo agency has not billed the lender for these repossession fees. If the repossession company acted in a less than legal manner, you may not have to pay these fees. The most common offense is for the repo agents to make contact after 9:00 PM; this is a violation of the FDCPA (Fair Debt Collections Practices Act). If the repo agency violated any of the provisions of the Act, contact the lender and demand your vehicle be returned or you will file suit in federal court and list them as a defendant. They are as liable as the agency they contracted with, and the vehicle will have been "wrongfully repossessed." Keep in mind, the lender does not want the car; they only took the car to cover the past due amount. If they keep the car, you will still owe on the loan, and legal action is not far behind.

User Avatar

As much as the repossession company charges. These are private companies with the latitude to set their own fees.

User Avatar

That is called voluntary repossession. You will be required to pay the difference in what the lender sells the vehicle for and the balance on the note after that amount is applied to the loan. You did avoid repossession fees by voluntarily turning the car in. Your credit will also show this repossession for 7 years.

User Avatar

Yes a lender can garnish your wages after a repossession. If the resell value of the item does not cover the cost needed to repay the lender, you are still responsible for paying the balance.

User Avatar

If you have a repossession then the lawyer fees will be charged to you.

User Avatar

YES, you can. The lender or repo company CANT keep your PP. They may charge you a fee for inventory and storage but they cant keep it.

User Avatar

First off you will be required to pay the repossession fees unless you voluntarily turned the car in. Secondly you will be required to pay the deficiency. The deficiency is the difference in the amount the lender sells the car for and the amount you owe. Let's say you owe $10,000 and they sell the car for $8,000. That leaves you owing the lender $2,000. Thirdly this repossession will be placed on your credit report and will stay there for 7 years. Repossession should be the last resort after you have talked to the lender and done all you can to avoid this. Sell the car to another individual even if you have to sell it for less than it is worth, then pay the lender the deficiency out of your pocket to avoid repossession. Have someone take over the payments. Whatever it takes to avoid this.

User Avatar

Yes. Additionally, you will be responsible for any late fees, repossession fees, storage fees, transportation fees, and legal fees and court cost incurred during the repossession process.

User Avatar

The company repossessing the car has no authority to negotiate terms with you. They are simply there to repossess the car. You must negotiate with your lender. Hopefully, you will do this before the the repossession order is submitted by the lender.

User Avatar

Contact the lender who repossessed the car. You will have to make up all back payments and pay all fees associated with the actual repossession.

User Avatar

Credit will be ruined for 7 years. You will also pay the difference in what the lender sells the car for and the balance on the note, and possibly the repossession fees. Avoid this if at all possible. Talk to the lender and see if you can work this out.

User Avatar

You are lucky. If you cannot make the payments contact the lender and try and work something out. If not voluntarily turn the car in yourself. You will save yourself the repossession fees.

User Avatar

If you have unpaid late fees that have accrued, your loan is not paid off. This is why the lender will not release the title. Additionally, if the amount remains unpaid, no matter how small, the lender can put your vehicle up for repossession. It would be sad to lose your car for as little as $100 dollars or less.

User Avatar

Sometimes yes. In some situations, such as default on a loan, the lender will take into consideration that something is better than nothing or less than the settlement amount. In cases where the vehicle is or soon will be up for repossession, the lender may feel it is better to settle for a lesser amount, than to go through the trouble to send the account for repossession, and conversion of the collateral, as well as attempting to secure the additional fees that come with and follow repossession actions.

User Avatar

Yes. The repossession fee is like a tow bill. They did pick up the vehicle. The storage fee is the time it takes to get the vehicle off of their lot. Each day adds another day of storage fees.

User Avatar

Repossession fees are variable for all auto lenders. Repossession fees are real costs that are accrued in the repossession of a vehicle, or based on these costs. Fuel, number of visits, wages, insurance, etc. are all taken into account. So the repossession fee on one vehicle may be vastly different, greater or less, than the fees on another.


Copyright ยฉ 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.