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Illegal Repossession???

by NorthernCalie
(Northern CA)

Our vehicle was involved in an accident and had to be towed away and stored at a towyard.

The finance company repossessed it while my account was in goodstanding. My payment was due on May 21st and the car was repossessed on May 13th. The other driver was at-fault and their insurance company accepted 100% responsibility. However the finance company blundered everything up.

The car was deemed a total loss and the insurance company was prepared to pay it off , however the finance company was unprofessional in their dealings and stretched the situation beyond 3 months. If it wasn't for me providing pictures of the accident (both vehicles full damage etc) The insurance company wouldn't have been able to make a decision on the vehicle's status as the towyard wasn't allowing the claims adjuster to see the vehicle.

Anyways.... the insurance company cut a check for $10,000.00 to the finance company who made sure that made it known they were the sole owners of the vehicle. My payoff on the vehicle was $7000.00.... They than told me late fees and other fees bring the payoff to $8700.... haha..... Am I not entitled to the surplus funds from the insurance company?

After all.. I'm the one that was involved in the accident and my family received minor injuries as a result of the accident. Plus my photos helped the claim. Also, would this be considered an illegal repossession?

I have proof that my account was in good standing when they took my car... Do they have any legal right to take the car in this situation? I'm in California.... and would like to thank anyone in advance for their advice.



Well, this is not good! You need a lawyer (also for the injuries). The insurance company must pay you for all your damages caused by the accident. This includes any "late fees" or other fees. You would not have to pay this if you were not hit at all.

In addition, the insurance company had to settle with you, and if you have not receive the excess between your settlement and the amount owed, you have not been paid. Thus, a cause of action still exists. If they are 100% at fault, they need to pay for 100% of your damages, including the rental car. Your only duty is to make sure that the payments were made and you still fulfill your obligation under the loan agreement.

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Good Luck,

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