1. Sved
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    Sved Senior Member

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    Repossession in US?

    Discussion in 'Plot Development' started by Sved, Apr 1, 2013.

    In general, who would execute a repossession of a car 'over there'?

    Over here the bank (it would typically be a bank) would hire a collection agency in case of any missed payments. However such agency would simply send out reminders, and perhaps try and reason with the debtor.

    In case the debtor still refuses (or simply can't) pay, the agency will then hand over the case to the 'Enforcement Authority' for execution. As the name suggests this is a government agency with authority to siphon through your bank accounts, come to your home, seize your salary, etc. They are also the ones who administer the 'Records for payment default' which is exactly what the name suggests.

    So 'over here' the 'Enforcement Authority' will do the repossession practically.
     
  2. chicagoliz
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    chicagoliz Contributing Member Contributor

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    It could differ by state. Usually with a car repossession, it would first depend on the contract with the person, but usually, my understanding is that some private service would retrieve the car. However, if the owner of the car has filed for bankruptcy, the car company would have to file a motion with the bankruptcy court to allow them to recover possession of the car. If the owner has not filed for bankruptcy, in the states with which I am familiar, there is no governmental authority that the car company would need to utilize.

    If the car company is also trying to collect money, in addition to the car, they would have to go to court and get an order from a judge. If they want to enforce a lien against real property or get money taken directly from someone's salary, they would need a court order to do so.
     
  3. Pheonix
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    Pheonix A Singer of Space Operas and The Fourth Mod of RP Staff Contributor

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    In the US, the bank will send it to a collection agency first. From there, if it still isn't payed after an amount of time, it gets turned over to a Repo Agency/Company. As far as I know, they're mostly private companies. They take the accounts over from the collection agency and are in charge or Repossessing the property.

    Sounds like it's pretty much the same system, just with different labels.

    If I'm wrong on any of this, I hope someone will correct me, and Hope this helps!
     
  4. Sved
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    Sved Senior Member

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    Thanks, very helpful :)

    My next question is: Would the actual car dealership be aware of any defaults on car loans?
     
  5. chicagoliz
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    chicagoliz Contributing Member Contributor

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    No. The financing is totally separate from the car dealership.
     
  6. mammamaia
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    mammamaia nit-picker-in-chief Contributor

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    unless it's the dealership that holds the paper on the car... which i'm not sure ever happens nowadays... but could conceivably be true if it's a used car...
     
  7. Cogito
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    Cogito Former Mod, Retired Supporter Contributor

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    The laws vary from state to state. But not every repo agent abides by those laws, either.
     
  8. Sved
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    Sved Senior Member

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    Thanks everyone!

    This will do just fine.
     

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