Chimicles & Tikellis is investigating a class action against finance companies (including banks and credit unions) for failure to legally comply with the Uniform Commercial Code (UCC) and/or state laws requiring post repossession notice. Generally, there is no notice required prior to the finance company retaking possession of the vehicle. After a vehicle is in the possession of a finance company, however, there are at least two notices required.
- Notice of Resale Date.
- This provides the consumer an opportunity to inspect the vehicle, a chance to appear at the sale and make sure it is done in a commercially reasonable manner. Failure to properly provide this notice is a violation of the Uniform Commercial Code or potentially a violation of state law and the consumer may be entitled to damages.
- Post Sale Notice
- This provides an accounting of the transaction. The UCC has specific requirements which must be reported to a consumer. The consumer must be able to determine the exact nature and extent of liability to the finance company for breach of the lease agreement or the purchase agreement. The finance company’s failure to appropriately send the post-repossession notice would be deemed an improper repossession and actionable under the Uniform Commercial Code or potentially actionable under the state law.
These notices often overstate the amount that consumers had to pay in order to get their vehicles back after they were repossessed or may not provide an address to either mail or deliver the request for an extension of the time period before the vehicles were sold after they were repossessed.
If you or someone you know has had their vehicle repossessed by a company failing to follow proper procedure, please use the “Email us about this Case” button to contact the following attorneys.