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Alex J. Esq.
Alex J. Esq., Attorney at Law
Category: Legal
Satisfied Customers: 16546
Experience:  Experienced Licensed Attorney
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I have a question regarding repossessing a car. We loaned/financed

Customer Question

I have a question regarding repossessing a car. We loaned/financed a car for an employee who was to pay $70/week until payment was complete at $3500 plus three months of insurance an $384.00 for tax to transfer the title. The employee has left employment and signed a note that she would pay $108/week to cover the $70.00 car payment and the $38.00 for the taxes until paid and due on Monday. The first payment came on a Thursday (3 days late and only paid $70). We have not received a payment since then, which will be two weeks. How soon can I start repossession proceedings. I know where the employee lives and works. What do I need to do first. Thank you
Submitted: 3 years ago.
Category: Legal
Expert:  Alex J. Esq. replied 3 years ago.
Hello. My name is Alex and I will be happy to answer your question.

I am sorry to hear about your unfortunate situation.

1) Was the title transferred to the buyer's name?

2) Do you have a lien on the title?

3) Do you have a written financing agreement describing the payment terms and repossession terms?
Customer: replied 3 years ago.
Yes the title was transferred into her name. We put a lien on the car online with the State of Ohio. We have a written agreement describing the payment terms and repossession terms.
Expert:  Alex J. Esq. replied 3 years ago.
Thank you for your follow up.

What does your financing agreement state about repossession terms?
Customer: replied 3 years ago.
That if she does not pay that we have the right to repossess the car and any funds that were paid would be forfeited.
Expert:  Alex J. Esq. replied 3 years ago.
Thank you for your follow up.

Does the agreement specify a default?

Did you accept and cashed the last payment, which was for less than the full amount owed?
Customer: replied 3 years ago.
Just that if she does not pay we have the option to repossess. We did cash the last payment which was a money order for less than the full amount
Expert:  Alex J. Esq. replied 3 years ago.
Thank you for your follow up.

Basically it would be a good idea to send a demand letter to the borrower by certified mail with return receipt requested and to demand for the borrower to bring the account up to date or if the payment is not brought up to date within 30 days to face repossession.

It would be important not to accept any payments for less than full amount past due and if the borrower does not bring the account up to date, then you can hire a repossession company and have the vehicle repossessed.

I wish you the best of luck and please let me know if you have any related follow up questions.