Can a vehicle be repossessed over $75?
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Can a vehicle be repossessed over $75?
Payment made earlier this month. Next payment due on 22nd. Repossessed on the 24th. Hubby claims is just cannot happen and since payment book states payment due after the 30th has extra fees. Actual amount behind on loan was $75, plus they considered this month payment late as well.
Asked on October 31, 2011 under Bankruptcy Law, Ohio
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
The answer, unfortunately, is that a vehicle could be repossessed for being as little as $1 behind on or in default of payments. A loan must be paid in full, by the due date (i.e. each monthly payment must be made in full, on time). If the payment is not made in full on time, then the loan or financing is in default. Once it is in default, the lender may take any action to which it is legally entitled. For vehicle loans or financing, that typically includes the right to repossess. So if you are $75 behind or in default on a loan, the car could be repossesed. You should review the loan/financing documents *carefully*--while the lender can strictly enforce them, the lender cannot do anything it is not entitled to by the agreement(s). If, for example, you are given a grace period to
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