Illegal Repossessions a Growing Problem
Illegal repossessions in Memphis have risen in recent months, and now the government has issued a warning.
The Consumer Financial Protection Bureau (CFPB) just issued new guidance for auto lenders. In it, they say they will closely review repossession practices by loan companies who might be “tempted” to take cars before it’s their legal right.
Car lending companies have reportedly taken cars before the legal grace period written into the loan. They’ve repossessed cars from people with on-time payments, claiming it was an administrative error, and they’ve refused to give people’s property back that was taken while inside a repossessed car.
Here’s why it’s happening and what you can do about it.
Why Are Cars Being Repossessed Against the Law?
In years past, car lending companies tended to give a grace period to people behind on their car loans. They knew it was cheaper to let you catch up on your bills than to take your car and try to resell it. Towing can be expensive, and the used car market wouldn’t make them very much money.
Now we have skyrocketing inflation and supply chain issues, which means there are fewer cars being made at all. This has raised the price for every single car on the road. As a result, your car is worth a lot more to creditors than it ever was before.
In fact, the average used car sold for over $27,000 in January 2022. That’s up 30% over the past year!
If a creditor can take your car, they’ll make a lot of money reselling it on the used car market. And they know it.
What Can You Do About Illegal Repossessions?
With creditors getting much more aggressive about repossessions, you need to know how to protect yourself.
First, you should make sure you know if there’s a grace period for your loan. They may have written this into your contract, which means you have the legal right to catch up on your payments for a certain period of time.
Second, you should get an attorney. A Memphis repossession lawyer is going to understand your rights under the law and help protect you and get your car back.
However, keep in mind that you have absolutely no time to waste. These auto lenders are in a rush to sell your car, and they aren’t going to wait on you to get legal help.
A Memphis Repossession Lawyer You Can Trust
If you’re struggling to make your car payments, don’t wait until you’ve lost your car to get help. Illegal repossessions in Memphis may be on the rise, but so are regular, completely legal repossessions. Either one can be devastating.
Our Memphis repossession lawyers have helped thousands of people get out of debt and stop car repossession. Not only can we help you keep your car, we can do it with a court order so you’re protected by the law—and the creditors are forced to leave you alone.
If you’re concerned about keeping your car, contact me today at 901-327-2100 or by using the form below. The conversation is totally free, no strings attached. And it could make all the difference.