any repo guys on here?
10-07-2003 | 08:58 PM
#9
Platinum Member
Joined: Sep 2001
Posts: 5,769
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From: tn
Repo laws vary from state to state.
Keep in mind that the state in which the "sales contract" was drafted and signed in is "usually" the laws that apply to the repossession in the event that the security is reclaimed. (I say "usually" because in some states, the contract needs to specifically say that the laws of the state in which the contract was signed are to apply regardless of the future location of the maker or holder of the note).
For this reason, there are a lot of "tote the note" lots just across the border of most states that have complex reclaiming statutes.
Tennessee law says you must show clearly that the contract is in default. Your contract will spell out the terms of default. You must then show that you have tried in good faith to contact the Maker. Then, the person or service repossessing the vehicle must attempt to speak to the Maker regarding the repossession when the vehicle is located. The Maker can refuse to allow repossession, but is at that point knowingly incurring a slew of reclaimable fees if they do not alow the repossession - the repossessor does not have to tell the maker that it is within the rights of then to refuse to allow the vehicle to be repossessed.
South Carolina, for example, is a state in which you must send a registered letter to the Maker giving them 21 days to make the note good before you can attempt a repossession - you must then practically make an "appointment" to come and repossess the vehicle at a given place and time (it is virtually impossible to reclaim a vehicle from an evasive payment-skipper in SC).
Anyhow, each state has different laws...
m
Keep in mind that the state in which the "sales contract" was drafted and signed in is "usually" the laws that apply to the repossession in the event that the security is reclaimed. (I say "usually" because in some states, the contract needs to specifically say that the laws of the state in which the contract was signed are to apply regardless of the future location of the maker or holder of the note).
For this reason, there are a lot of "tote the note" lots just across the border of most states that have complex reclaiming statutes.
Tennessee law says you must show clearly that the contract is in default. Your contract will spell out the terms of default. You must then show that you have tried in good faith to contact the Maker. Then, the person or service repossessing the vehicle must attempt to speak to the Maker regarding the repossession when the vehicle is located. The Maker can refuse to allow repossession, but is at that point knowingly incurring a slew of reclaimable fees if they do not alow the repossession - the repossessor does not have to tell the maker that it is within the rights of then to refuse to allow the vehicle to be repossessed.
South Carolina, for example, is a state in which you must send a registered letter to the Maker giving them 21 days to make the note good before you can attempt a repossession - you must then practically make an "appointment" to come and repossess the vehicle at a given place and time (it is virtually impossible to reclaim a vehicle from an evasive payment-skipper in SC).
Anyhow, each state has different laws...
m
