Repossessions Are On the Rise
In a recent consumer affairs article, Karen Aho of msn.com, reports an increase in vehicle repossessions. She cites subprime lending, longer loan terms, a rise in negative equity, the general economic downturn and other causes for vehicle defaults. Californians are just as vulnerable as consumers in the rest of the country. In our law practice, we have noticed a dramatic uptick in repossession cases lately. This is only partly due to car owners' inability to pay. As the subprime market feels a financial squeeze, patience with late payments is wearing thin and debt collectors may be willing to tow now and ask (or answer) questions later.
Check out Karen Aho's informative article and advice.
Many consumers are unaware that, because the right to simply tow away the car is a drastic remedy for the creditor, California has significant consumer protection laws in place to prevent abuse of the process. The important thing is to act quickly. In the event of a wrongful repossession, or if the creditor's Notice of Intent to sell the car is defective, it is important for the consumer to get legal help before it is too late.
