Ontario Repossession Lawyers
When you buy a car, you agree to make timely payments in order to secure it. Your vehicle serves as collateral. What that means is if you default on a payment, then the creditor has the right to repossess your vehicle. This means that they can take it back.
However, there are various rules that must be followed. For example, the creditor itself cannot take back your car. Instead, they need to hire a third party to do so.
There are other laws that must be followed. If the creditor does not follow the laws, the repossession is not legal and you may be able to get your car back. Wadhwani & Shanfeld can help protect your legal rights in the event of a repossession. An Ontario repossession lawyer can assist you with a wrongful vehicle repossession.
There Must Be a Default
A creditor can repossess a car without filing a lawsuit. However, the vehicle cannot be repossessed for no reason. There must be a default or breach of the agreement, such as failure to make a payment by the due date. If you are current on payments and there is no such default, then a repossession would be illegal.
There Cannot Be Breach of the Peace
The repossession also cannot breach the peace. A breach of the peace is illegal. Examples include the following:
- Using or threatening to use force
- Threatening arrest or police involvement
- Forcing a person to stop their vehicle while in motion
- Breaking through a gate or closed garage
- Damaging the vehicle in an attempt to repossess it
Rights After Repossession
Once your vehicle has been repossessed, you have certain rights. If you purchased your car in California, you have two rights if you want to regain possession of your car.
You can reinstate the contract by paying all amounts past due, plus any delinquency charges, collection fees, and repossession costs. Upon reinstatement, the car will be returned to you and you will continue paying on the contract as if there was no repossession.
Another option is to “redeem” the vehicle. This involves paying the entire balance due on your account, plus any applicable delinquency charges, collection fees, and repossession costs. Once the vehicle has been redeemed, it will be returned to you. You will then own the car free and clear of any contract or lien.
If you cannot afford either of these two options, the car will be sold at auction. The creditor will apply the proceeds of the sale to your account balance. If the proceeds from the sale are insufficient, you will be required to pay the difference to the creditor.
Contact Wadhwani & Shanfeld Today
Most people depend on their vehicles. When it gets taken away without a default, it is illegal and you could receive compensation. The Ontario repossession lawyers at Wadhwani & Shanfeld can assess your situation and help you get your car back. To learn more, schedule a consultation. Call our office at (800) 996-9932.