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Hi from Just Answer. I'm PDtax, and will assist.
Industry standard addon fees in repossession won't help you with your settlement with your lender. Each contract has language allowing them certain rights and collection costs in event of default.
A review of your contract will spell out what rights there are if and when you defaulted. I can explain some industry secrets, so you are aware of how this part of lending really works.
All of the costs that a lender incurs when you default are marked up by the lender. Repossession fees for the last one I was involved with was $900 for repo costs, but the tow company got $250 plus some storage. The lender marked up those costs. Same with legal. The attorney agrees to a flat fee, and the bank marks that up.
The bank will argue that their language in default allows this, and that so many repossessions cause losses for the bank that they mark them up to help pay for those they will never get.
If your vehicle was not repossessed, but the file went to the attorney, the attorney opened a file and is entitled to his fee. I can suggest negotiations with your bank that might get the amount down.
If you are otherwise a good customer, with your banking and borrowing business there, you might be able to negotiate a settlement of a portion of the fee, especially since the bank won't want to lose a good customer.
Keep in mind the attorney might have been able to bill the bank $300-$400 or so to open a file. If your offer at least covers that cost, you might be able to settle for less. If you have other loans, you might be able to refinance them elsewhere at lower rates, but I would get prices for the new loans before I called my bank. That's just good information to have when you want to make a deal with a lender.
I hope that sheds some light on the repo fees, and gives you a settlement option. Thanks for asking at Just Answer. Positive feedback, and a bonus if warranted, will be appreciated. I'm PDtax.