L.A.W. Recovery Blog


All About Vehicle Recovery and Repossession

imgres-2In cases where consumers have purchased a vehicle on credit or with payments over time, the loan is generally secured by the vehicle itself. If the borrower then defaults on the loan by failing to make the agreed-upon payments, the vehicle can be reclaimed by the lender as the collateral for that loan. The resulting process is known as recovery or, more commonly, repossession.

What repossession means
Repossession of a vehicle simply means that the lender is taking back the collateral for the loan. Depending on the terms of the contract, even one day of default or late payment may be sufficient for the lender to begin repossession proceedings. In most cases, no legal action is required in order for the lender to take back the property. Repossession does not end the debt owed by the borrower; even after the vehicle has been recovered and sold at auction, any remaining balance is still the responsibility of the borrower.

How repossession works
Most lenders employ the services of professional repossession companies in order to ensure that the process is handled legally and quickly. Recovery and repossession companies employ trained agents who locate and recover the vehicle, usually without warning and without informing the owner beforehand. This allows the recovery company to work without harassment or fear of interference. In some cases, the borrower may attempt to hide the vehicle. Trained spotters and skip tracers use advanced technological methods to locate these vehicles and return them to their rightful owners as rapidly as possible.

Other reasons for vehicle recovery
While the majority of recovered vehicles are repossessed due to loan default, there are a few other reasons why recovery might be necessary. In some cases, fraud may have occurred in the purchase or transfer of title of a new or used vehicle. Bad checks and other dishonored financial instruments are the usual culprits in this regard and may also prompt criminal charges against the individual who purchased the vehicle in bad faith. Additionally, car rental agencies may employ vehicle recovery companies to track down and retrieve rental cars and trucks that are not returned within the proper time period.

While most repossessions occur in relation to cars and trucks, other vehicles may also be repossessed including boats, motorcycles, aircraft and over-the-road semis. In these cases, fees may be doubled or tripled due to the difficulties that each of these vehicle types represents for the recovery company.

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6 Responses to All About Vehicle Recovery and Repossession

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  3. Alex says:

    Great job here! I’m not about to take sides here because I realize that both parties can operate in the shadows when it comes to the cat and mouse game of auto repossession. However, I can certainly see the frustration that must mount when it comes to the people that would rather hide their cars than be responsible and pay their bills. They are hiding their vehicles because they know they are at fault and for whatever reason refuse to pay their bills. Can you imagine the inconvenience this must cause with the lenders. Pathetic, disrespectful and immature as the day is long!! They are acting like common criminals, hiding something that they know is not rightfully theirs anymore. Obviously there are always exceptions, but these exceptions are not the problem. Anyway , thanks for being here. This is some related info I found to be useful: http://creditletters.eu.pn/help-my-car-was-repoed/

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Los Angeles Auto Wholesaler and Recovery Service, Inc. is dedicated to revolutionizing the repossession industry from the initial contact and throughout the entire process. We take much pride in recovering your collateral safely, legally, and effectively.

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