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Laws for Repossession Following a Title Loan Default

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  • 12-05-2014, 08:18 AM
    mrjohnjohn
    Laws for Repossession Following a Title Loan Default
    My question involves an auto loan or repossession in the State of: PA
    Hello All. I thank you in advance for any responses.

    My questions involve a car repossession from a title loan.
    Title Loan in Delaware
    Car registered, located, and repossessed in Pennsylvania
    Car taken to and stored in New Jersey

    1. Which state's repossession rules need to be followed (Delaware, Pennsylvania, or New Jersey)? I ask because states have different laws and there are 3 states involved.
    2. Are they allowed to charge me an 'administrative fee' to retrieve my personal belongings?
    3. What kind of notice are they required to give me in regards to the sale of the vehicle and am I allowed to attend the sale of the vehicle?
    4. What information is supposed to be in the notice they send me after the vehicle is repossessed?
    5. Am I required to give the keys when/if I go to retrieve my personal belongings?

    I am not trying to get over on defaulting on the loan. I realize in the end it was my error that caused this action. I just want to make sure everything is being done legally. Again, thank you for any responses. Thanks
  • 12-05-2014, 08:27 AM
    Disagreeable
    Re: Laws for Repossession Following a Title Loan Default
    Wherever you made the contract matters. Those rules should apply unless the contract provides otherwise. That said, if you are in a different state, you may find objecting to them not being followed is a costly waste of time until they come after you for a deficiency. It is customary for the repo agent to charge a fee for recovery of personal effects. It is designed to cover their expense involved in doing the inventory of the vehicles contents, removing them, storing them, documenting them, then processing the release of property to you. You should ask where the vehicle will be auctioned if not notified and bid the amount owed on the loan plus repo and auction fees, to get back your vehicle and leave a clean slate.
  • 12-05-2014, 09:23 AM
    flyingron
    Re: Laws for Repossession Following a Title Loan Default
    If the contract was taken out in PA (likely if the vehicle had a PA title regardless of whether the title loan company claims their office is), PA law applies. They should have given you immediate notice (if you were there) or certified mail notice. The notice will include when the sale is. The sale is open to the public (though you may need to show you're are a bona fide bidder which may require some security).

    I believe charging you for access to your personal effects is ILLEGAL under PA law.

    It would probably be in your interest to surrender the keys.

    THis may help you: https://www.portal.state.pa.us/porta..._act_mvsfa_pdf
  • 12-05-2014, 09:56 AM
    mrjohnjohn
    Re: Laws for Repossession Following a Title Loan Default
    Thank you for the responses.

    I went to Delaware to get the original title loan but I live in PA.
    I was not there during repossession (middle of the night) and I did not receive a certified letter. They said they sent a previous letter, but I never received it, so they sent another letter. They state the original letter was mailed on 11/20 and the 2nd letter was mailed on 12/2. The letter is titled 'Notification Of Our Plan To Sell Property'. It is dated 11/20 and states that they have my vehicle, they will sell it at private sale some time after 12/5, call them to get the exact amount I owe, call or write to get a detailed explanation on how they figured out what I owe them, and to call or write for information about the sale.

    They state I cannot get my personal possessions without bringing the key and paying the $75 administrative fee.
  • 12-08-2014, 10:11 AM
    Mr. Knowitall
    Re: Laws for Repossession Following a Title Loan Default
    Per statute, "The holder's notice shall also state that any personal property left in the repossessed vehicle will be held for thirty (30) days from the date of the notice's mailing. The personal property may be reclaimed within the thirty (30) day time period." I don't see any authorization for a fee, and would thus assert a statutory right to recover personal property within the specified time frame.
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