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  1. #1
    Join Date
    Sep 2010
    Posts
    3

    Default Repossessed for No Insurance

    My question involves an auto loan or repossession in the State of: Georgia

    My vehicle was repossess because according to , X , finance company I didn't have full coverage insurance. But what really happened was I switched insurance from Geico, to The General. Geico sends them a letter saying I canceled, so the car company calls me several times on Friday, I didn't answer because I was in training at work, they leave message to call them back. So they are closed on Saturday and Sunday. So Monday morning I wake up and my vehicle is gone. I give them a call and they say well you don't have insurance, I say yes I do and haven't had a lapse in coverage I give them the info, they call the general and see that I did have coverage, now there story moves from you didn't have coverage to you had to high a deductible, our company requires a deductible no higher than $250, well my deductible with Geico was $500 and they didn't have a problem with that. The deductible with The General was $1000. My question is since they had already not followed there own contract with the deductible, and since I had full coverage without lapse how can they say they want the full balance of the loan for me to get the vehicle back, when I had coverage? And is there any recourse for me to sue them, since they repo'd not for being late with a payment , but simply because they couldn't get a hold of me for 1 business day?

  2. #2
    Join Date
    Jan 2006
    Posts
    28,092

    Default Re: Repossed for No Insurance

    wow, is this a buy here pay here lot? That is some seriously fast action, unusually fast.


    Your contract will rule. If it requires you to have $250 deductible then that is what you must have. Maybe they missed the fact Geico was $500 deductible

    So, what does your contract require as far as the deductible?.

  3. #3
    Join Date
    Sep 2010
    Posts
    3

    Default Re: Repossed for No Insurance

    It says deductible of $250 dollars. We had GEICO for this vehicle for almost 2 years with a $500 deductible which again I know they were okay with simply because we had to bring in proof of that coverage in January of this year to verify we still had it. And of course I never read the full terms an conditions on the back of the contract but it says they require $250 deductible. And no this isn't a buy her pay here car or company they are a regular finance company. Also more fuel to the fire is that while I was picking up my personal items from the repo company lot, I asked about what exactly the repo order said and she said it just said to repo but, what to me was significant she said she received the repo order via fax on Tuesday of last week. I recorded the entire conversation on my phone, but again I didn't even get a call from the finance company until Friday of last week. I just feel this is crazy especially seeing as it was over an insurance matter that, again we have documented proof we had full coverage on the vehicle, we were not late or anything. Now we have to take a hit on our credit for no reason.

  4. #4
    Join Date
    Jan 2006
    Posts
    28,092

    Default Re: Repossed for No Insurance

    And no this isn't a buy her pay here car or company they are a regular finance company
    .didn't mean to make that sound insulting if you took it that way. I was simply amazed at the speed which the actions were taken. Most regular finance companies and banks work much slower and generally send letters of notification long before taking any action such as forced insurance or repo.

    so, have you added proper insurance?

    what, if anything, does your contract say to actions available to the lender should you fail to provide the required insurance?

    what to me was significant she said she received the repo order via fax on Tuesday of last week.
    when, in relation to the Tuesday mentioned, did you cancel insurance with Geico?

    has the lender sent you a notice of your rights to reclaim the vehicle by paying the balance in full and any fees incurred by the repo?

  5. #5
    Join Date
    Sep 2010
    Posts
    3

    Default Re: Repossed for No Insurance

    Didn't take it that way, Yes we added the proper insurance on Monday (9/13) which only entailed us per, Chris, at said finance company lowering our deductible to $500. Now that I have read all the jargon on the back of the contract it just says they may either force place insurance or repo the vehicle to protect their asset. And just as background info we actually had switched from Geico on 7/13/10 and switched to the general on the same day. I'm under the assumption that GEICO just had sent the letter out until last week. And to make things even more crazier which again I feel proves me to maybe have a valid case, is talking to the repo company again they let go that it was out for repo because of default in loan stating we were 30 days late. Which were absolutely wasn't. The certified mail I received today said they repo'd the car on the 14th when they picked it up on the 13th and that i had to pay the full balance before the 24th of this month at which point they are going to sale it at their office as a public sale to the highest bidder. I just can't believe this is legal, I know that business is set up against most consumers best interest, but there has be some sort of protection against this especially again since this wasn't like we were late on a payment. Also if I were to show up to the public auction could I bid on the car? And is the finance company allowed to bid on the car?

  6. #6
    Join Date
    Jan 2006
    Posts
    28,092

    Default Re: Repossed for No Insurance

    I believe for there to be a public auction, you must demand it. If there is a public auction, yes, you can bid on your own vehicle. You will still owe for any deficiency though (balance of loan (including fees (cost of auction) - auction sales price).

    If this is a regular lender, I would try to speak with them and try to get them to rescind their repo and intent to auction. As you say, this is really an excessive reaction to a minimal problem. The only actual problem was the deductible since you always had insurance.

    It really doesn't make sense to do what they are for the reasons claimed.

    (a) When any motor vehicle has been repossessed after default in accordance with Part 6 of Article 9 of Title 11, the seller or holder shall not be entitled to recover a deficiency against the buyer unless within ten days after the repossession he or she forwards by registered or certified mail or statutory overnight delivery to the address of the buyer shown on the contract or later designated by the buyer a notice of the sellerīs or holderīs intention to pursue a deficiency claim against the buyer. The notice shall also advise the buyer of his or her rights of redemption, as well as his or her right to demand a public sale of the repossessed motor vehicle. In the event the buyer exercises his or her right to demand a public sale of the goods, he or she shall in writing so advise the seller or holder of his or her election by registered or certified mail or statutory overnight delivery addressed to the seller or holder at the address from which the sellerīs or holderīs notice emanated within ten days after the posting of the original sellerīs or holderīs notice.

    (b) In the event of election of such public sale by the buyer, the seller or holder shall dispose of said repossessed motor vehicle at a public sale as provided by law, to be held in the state and county where the original sale took place, or the state and county where the motor vehicle was repossessed, or the state and county of the buyerīs residence, at the sellerīs election.

    (c) This Code section is cumulative of Part 6 of Article 9 of Title 11 and provides cumulative additional rights and remedies which must be fulfilled before any deficiency claim will lie against a buyer, and nothing herein shall be deemed to repeal said part.

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