One of the consequences of a worldwide pandemic is the economic challenges people faced and its impact on their credit scores. With or without a potentially deadly virus spreading from person to person, the consequences of non-payment, specifically for an automobile, can result in catastrophic consequences.
The consequences of car repossession
Month after month of falling behind on payments can result in repossession of your car by the lender or leasing company that holds the lien. Losing access to the vehicle is only the beginning of the problems you face. Should the bank decide to resell it and the amount is less than you owe, you could be held accountable for paying the difference.
In Virginia, repossession can occur after one missed payment. While repo companies have the right to take the vehicle, they must also adhere to specific rules that limit how and where they can take your property. Agents cannot use violence or deception to secure the property.
Following the removal of the vehicle, lenders must notify you in writing that you have the right to reclaim your vehicle once you have satisfied all financial obligations. That notices must also include the date the car will be sold at auction and where to pick up personal effects left in the vehicle.
Regardless of the consequences, the largest and most long-lasting will be damage to your credit score that could last several years.
Far too many repossession cases see financing companies in violation of the law and the rights of their customers. If you feel that the repossession of your car violated your rights, representation from an attorney can make a significant difference in protecting those rights and securing the justice you deserve.