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Loren
Loren, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 34018
Experience:  30 years experience in general legal matters.
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When can repo fees be added to an Auto loan financed through

Customer Question

When can repo fees be added to an Auto loan financed through a bank/credit union?
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  Loren replied 1 year ago.

Good morning. I am Loren, a licensed attorney, and I look forward to assisting you.

Expert:  Loren replied 1 year ago.

The repo fees are added to the amount owed in accordance with the terms of the loan agreement. Evey security agreement I have ever seen in the course of over 30 years of practice has included "all costs of collection" as recoverable by the lender. That would include the repo fees. The wording will usually provide that it is added to the principal amount owed.

Expert:  Loren replied 1 year ago.

If you believe the fees are bogus or unsupported you can file suit against the lender.

Expert:  Loren replied 1 year ago.

Otherwise, you will want to check your loan agreement.

Customer: replied 1 year ago.
What if the car was never repoed, and account is brought up to date on paymens?
Expert:  Loren replied 1 year ago.

Thank you for following up.

Expert:  Loren replied 1 year ago.

If the agreement provides for reimbursement of all collection costs and they had to pay a fee to start the repo process because you went into default, you would be liable, as it is a cost of collection.

If the repo company refunded whateve the lender paid then they would have to credit your account, but if they paid out fees and you came out of default before you could be repossessed, the cost of the aborted repo is going to fall within "costs of collection".

I am sorry to be tee bearer of bad news, but I am sure you are looking for accurate legal information.

Expert:  Loren replied 1 year ago.

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