Unfair Car Repossession Practices

Summary

In California, lenders must follow fair business practices even when repossessing a car. Misleading communications can violate the implied covenant of good faith and fair dealing. If your contract was terminated without clear notice and you received mixed messages, you might have grounds for a complaint under California Business and Professions Code § 17200. Consulting a consumer rights attorney could help you explore potential remedies. Filing a complaint with the California Department of Consumer Affairs is also an option.

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Hi .. just curious. Re: Wrongful repossessions. I know the car company doesn't have to inform you they are going to repo the car, and can repo after being 1 day late; but say they aren't that harsh. And normally allow you to be several payments behind. And always sent multiple notices. But this * time they not only don't send the normal notices, they send positive business correspondence and happen to ignore all my text and correspondence and requests to pay. And the still take the car. Is that legal and fair business practices?
Hi C'Leste!
In California, while a lender has broad rights to repossess a car when a payment is missed, they still must follow fair business practices. Here's what you should know:
- Good Faith and Fair Dealing: Lenders must act fairly and in good faith. Sending misleading positive communications could be deemed unfair.
- Right to Cure: Some contracts include a "right to cure," giving borrowers a chance to catch up on missed payments. Check your contract.
- Reinstatement: California allows you to reinstate your loan by paying off the overdue amount plus repossession costs.
Have you checked your contract for any specific terms regarding notices and right to cure?
It's actually a long term rental for Rideshare. So there's no right to cure or reinstatement mention in the contract. Turns out they had sent a contract termination email (that I didn't see) 28 days prior to the repo, but kept sending normal invoices and not the normal threats to pay, so my status was misleading and I didn't know or have any sense of urgency
In your situation, C'Leste, the following points might be relevant:
- Implied Covenant of Good Faith and Fair Dealing: Even without a right to cure, the company must act in good faith. Sending mixed messages could violate this covenant.
- Unfair Business Practices: Misleading communications can be deemed unfair under California Business and Professions Code § *.
Have you considered discussing this with a consumer rights attorney to explore potential remedies?
Is a consumer rights atty different from a consumer Protections atty?
Typically, a consumer rights attorney and a consumer protection attorney focus on similar issues, often overlapping. Both aim to protect consumers from unfair practices, but:
- Consumer Rights Attorney: Often deals with individual grievances and rights under consumer laws.
- Consumer Protection Attorney: May focus on broader regulatory compliance and enforcement of consumer protection laws.
Have you looked into potential legal recourse or consulted with either type of attorney about your specific situation?
I've spoken to all the consumer protection atty in my state. There aren't that many that specialize in Wrongful repos
Case Rating: *
C'Leste, it sounds like you may have a strong case based on potential violations of the implied covenant of good faith and fair dealing, as well as possible unfair business practices. Given that you've already spoken to several consumer protection attorneys, you might want to:
- Consider contacting a consumer rights attorney who may have experience with wrongful repossessions.
- Look into filing a complaint with the California Department of Consumer Affairs.
Would you like more information on how to file a complaint or further legal options?