is impound reason alone for auto repossession?
jp morgan chase auto finance has been my lien-holder since the loan started. i have never had a late or insufficient payment. the vehicle has always been fully insured and registration has been always been current.
my driver’s license was suspended by arizona motor vehicle as i had sped by too many automatic cameras. i was pulled over for failing to come to a complete stop at an intersection and since i wasn’t licensed, my truck was impounded and a 30-day hold was established by scottsdale police – they would issue a release form in a month if i could get my delinquencies taken care of.
30 days later, i went to the scottsdale police department with a copy of my insurance, registration, license, and $150 processing fee: all i needed to retrieve my truck from the impound lot.
the impound lot told me chase auto had taken my truck before the 30-day hold was up. chase refuses to release the truck to me, and i have received notice of repossession – after the fact.
am i screwed?
Tags: insurance, Jp Morgan, Lien Holder
May 11th, 2011 at 2:49 pm
Yes, you are screwed. Read your contract, I’m sure you will find the language they added to protect themselves.
May 12th, 2011 at 8:31 am
Probably. An auto lender has a “lien” on your car, allowing them to repossess it if you don’t pay. But if you do anything that “impairs the value of the lien”, then they may also repossess it.
Allowing your poor driving habits to get you suspended and your car impounded gave them reason to think that the value of their collateral was in jeopardy.
This is all probably in their contract with you somewhere and in your state’s laws. See a lawyer.
May 14th, 2011 at 7:36 pm
1. Look at your loan documents. When the lender believes that the security is in danger the lender may take action (repossession) in order to secure the collateral. Having the collateral in impounded places the security at risk because they don’t know if you’ll redeem it, and if not, then it can be auctioned.
2. They don’t owe you a notice of repossession PRIOR to repossessing it. Only after it, and it is part of the procedure necessary to sell the vehicle at auction.
3. If Chase sells it at auction, you will be notified where and when and can go and bid on it. Normally, the lender makes the first bid of the balance owed on the car. If what they get at auction doesn’t cover the debt, then they might seek a deficiency judgment against you. In other words, they will sue you for the amount you owed, less what they got, plus costs and attorney fees.
** Note: This is a general discussion of the subject matter of your question and not legal advice. Local laws or your particular situation may change the general rules. For a specific answer to your question you should consult legal counsel with whom you can discuss all the facts of your case. Answering this question does not indicate an attorney-client relationship. **
May 15th, 2011 at 8:13 pm
- dont know if your screwed but i can tell u this much – if you dont go to retrieve your car with In a certain amount of time they are legally required to tell the lien holder the car is in impound – some states they have to do this with in 3 days – you may be able to get your car from the people who repossessed it – but youll most likely have repossession fees and have to pay the impound fees ( or reimburse them )
ive never known a person to get their vehicle ” repossessed “because of poor driving habits ( not that your the safest driver in the world but as long as you have full coverage insurance – their collateral was not in jeopardy -
May 17th, 2011 at 8:18 pm
yes.welcome to az