GUIDE TO AUTOMOBILE REPOSSESSION SHOULD THE CONSUMER SURRENDER THE CAR VOLUNTARILY
  • Voluntary surrender saves some repossession expenses, attorney fees and losses suffered during repossession.
  • Early surrender speed collateral's sale, retaining value of goods that depreciate.
  • Voluntary surrender should be exchanged for creditor concession.
  • Determine if creditor will allow debtor to sell the car for the creditor; the consumer can also increase sale price by finding buyers for the car. It can also be effective later if the consumer has shown the creditor a bid for the car that is higher than an eventual creditor sale after repossession.
  • Voluntary surrender offers little benefit to consumer where state law prevents creditor from seeking a deficiency.
  • No voluntary surrender where security interest invalid.
  • Before deciding to surrender the car voluntarily, consider whether consumer can sure the default by paying only delinquent installments, and whether this will allow the consumer to retain the car in the long run.
  • Voluntary surrender forecloses debtor's ability to challenge wrongful repossession.
  • Voluntary surrender is not the only means of stopping unpleasant collection effort.
  • Notify the creditor not to trespass or threaten the consumer, and that the consumer objects to any repossession.
  • Debtor and family should not consent to repossessor's entry onto debtor's property or repossessor's seizure of the car.
  • Consumer and family should object to the repossession.
  • Consumer should not resort to violence, but should call police if necessary.
  • Consumer should arrange for neighbors and/or relatives to witness repossessor's threats, violence or trespass, and to witness the debtor's objections to repossessor's actions.
  • Consumers should not resist seizure by sheriff or other government official, but should verify official's authenticity.
  • Consumers should not leave unsecured property in vehicles that are threatened with repossession under the U.S. Soldiers' and Sailors' Civil Relief Act; dependents should apply to court for similar protection.

CHECKLIST OF WRONGFUL REPOSSESSIONS OF AUTOMOBILES

The following is a list of actions by creditors in repossessing automobiles, which may violate federal and state laws:

  1. A state law prohibits any self-help repossession that breaches the peace, including seizures using bodily force or threats.
  2. Creditors cannot repossess a car over the debtor's objections, or the objections of other family members.
  3. Repossession is permitted from public street or driveway if the debtor does not object. Repossession may breach the peace if a car is taken from closed garage.
  4. The presence of a police officer is constructed force that breaches the peace.
  5. Repossession is wrongful when creditors simulates official status, or engages in other trickery or deception. Even if -this does not breach the peace, it may violate other federal or state laws.
  6. Louisiana and Wisconsin prohibit self-help repossession without debtor's consent.
  7. Federal law provides military personnel and the dependents with special protection against repossession.
  8. Tribal law may protect Native Americans living on reservation from self-help repossession.
  9. Self-help repossession may be subject to constitutional due process challenge if a state official participates in the seizure or if the state constitution does not require state action as prerequisite to due process violation.