Michigan Repo Law

cinadams23 · #1 04-10-2009, 05:06 PM

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

I bought my truck 3 years ago with a 6 year loan. The first year and a half I was employed and made my payments on time. After that I lost my job and was having difficulty paying my payment on time. I am now employed and am still a little behind (actually 28 days behind as of today). I have accrued about $250.00 in late fees throughout this time. My truck is financed through Chase Auto Finance and it seems that everytime I talk to them about my load I get a different story. At one time they told me that they don't start the repossession process until I am 60 days late, then another time they told me that they can start the repossession process at any time. Last week I called them and explained that I can pay a full payment on April 17th and they said that would be fine, then just yesterday they called me and said that that was their final phone call to me and if I didn't send them a payment by midnight yesterday that they were going to repo my truck (I am only 28 days late right now), I continued to explain to them that I called them last week and said that I would be making a payment on the 17th (in one week), and the said that wouldn't be good enough. However today they have called me about 8 times and left messages. I then called them back and told them again that I would be making a full payment next Friday.

My question is this: How far behind exactly do I have to be for them to actually repossess my truck? Can they actually repossess my truck if I am less than 60 days late?

Please advise.

Thank you in advance.

OhMy · #2 04-10-2009, 05:20 PM

I am sorry to hear of your problem.

They can repo a vehicle when it is one day past due. There is no law that states that they have to wait 60 days.

When there is a history of late payments many lenders will repo a vehicle when it is unpaid after the grace period.

If they are telling you that they are going to repo if you do not pay you may want to consider borrowing some money from a relative to bring the account current. If you let it go into repo the fees to recover the car can be very high if they even allow it at all.