Lenders are increasingly aggressive about sending out the repo man. In just the last few years, tens of thousands of California car owners have fallen prey to the tow truck stalking their workplace or their apartment complex at night. Even when borrowers think they have made a verbal arrangement with the bank or credit union over the phone, they may wake up in the morning or get off their shift late in the evening to find their car gone. After the shock and anger wears off, a borrower's first reaction is, what now?
The first thing to know is that if you are late with a payment and get an extension with the lender, make sure that agreement is in writing. We have heard of at least one woman who looked out the window to see her car being towed way, even while she was holding the phone and talking with the bank representative. She had just been given verbal permission to make her payment the following week.
The repo man is not likely to come to the door and ask if he can just take the car away. They get paid when they hook it up. While the tow truck operator cannot break into the consumer's home or garage, or phsycially threaten someone, neither can the consumer hide the car or breach the peace. This could seriously affect your rights to reinstate the contract or redeem the vehicle.
Many people think that if they lose the car, that is the end of it. But sometimes the lender can sell the vehicle at auction and charge the borrower the difference between the total amount owed and the auction proceeds. This is called the "deficiency." In California, the lender must send the consumer a notice after the car is repossessed, explaining in detail what he or she must do to get the car back. Many of the post-repossession notices do not comply with California law. If the notice is defective, the lender may not be able to collect the deficiency. Know your rights. You can learn more about California repossession rights here.