What can I do when facing repossession even though I pay? How? 11 Answers as of June 10, 2015I have been using priority mail with delivery receipts to submit monthly installment payments on a motorcycle. The finance company does not consistently cash the checks and are now threatening repossession for non-payment. When I offer the delivery proof, they tell me it doesn't matter because they didn't cash the checks and I should make immediate payment over the phone. It seems like they cash one out of every 3 checks that I send.
Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
You could let them know that you have a record of all payments, that they should cash all the payment checks which they receive, and if they try to repossess the vehicle, they will find themselves in Court, defending a federal Truth in Lending lawsuit, and any other kind of action which a resourceful lawyer may discover or invent. But their not cashing the checks does raise a problem, of course, which is that they have not been paid. You might insist on their returning all the uncashed checks, and only then make a telephone payment of the total amount. You could also file a grievance or complaint with the state agencies which handle consumer matters, for example the Division of Motor Vehicles in the state Dept. of Transportation, the state department of justice, or in Wisconsin also the department of Agriculture...and Consumer Protection. Good Luck.
Answer Applies to: Wisconsin
Andrew T. Velonis, P.C. | Andrew Velonis
It is their responsibility to cash the checks, so if you are sending them on time, you are in the clear. Under the Uniform Commercial Code, when you get a check to them, you are "tendering" payment. If they threaten to repo the vehicle, that is a violation of the air Debt Collection Practices Act. If they keep it up, they might end up paying for your motorcycle themselves.
Answer Applies to: New York
Edelman, Combs, Latturner & Goodwin, LLC | Daniel A. Edelman
They are not entitled to manufacture a default in this manner. Also, insisting on an ACH debit as a means of repayment is illegal. I would tender the payment as requested, stop payment on the checks that have not been cashed, and then sue them.
Answer Applies to: Illinois