We periodically get inquiries from potential clients asking about their rights after their vehicle get repossessed (repo’d).  This post generally summarizes your legal rights when your car is seized in  a repossession.

The first question that arises is whether your finance company even has the right to repo the vehicle.  Generally, the lender can repossess the vehicle if you are in default.  Default occurs when you have violated certain important terms of your financing contract.  Default can occur not only when you fall behind on payments, but can also occur for other reasons.  Many contracts also define default as having occurred when the vehicle is damaged and not repaired, when the insurance on the vehicle lapses, when the vehicle is impounded, and if you file for bankruptcy.  Your contract may also have additional or different definitions for what triggers a “default”.

Some consumers believe that turning in a vehicle voluntarily means that it was never repossessed.  Unfortunately, even a voluntary surrender of the vehicle is usually classified as a repo.  However, there may be certain advantages to a voluntary repo: you can avoid towing charges and certain other fees that the finance company ordinarily tries to recover later, and you may be able to control when and where the vehicle is turned in.  That way, you do not have to worry about your personal belongings that were left in the vehicle at the time of the repo, since they often mysteriously “disappear” during a night-time repo.

Contrary to what is sometimes shown on television, the repo man (or repo woman) cannot repossess your vehicle if it would involve a “breach of the peace“.  Obviously, injuring you physically qualifies as a breach of the peace.  However, other circumstances can also create a breach of the peace, such as breaking into your garage, damaging your fence or gate to get access to the vehicle, and even threats of bodily harm.  Remember, the lender or finance company who hired the repo man is usually responsible for all of their actions during the repossession.

Ordinarily, you will receive at least one (and possibly many more) notices of default before your vehicle is repossessed.  However, you are also entitled to receive additional notices.  For example, you are entitled to receive notice of when, where and how your reposssessed vehicle will be sold.  After the sale, you are entitled to an accounting.  This means that the lender must itemize how much you owed before the sale, how much they received for the sale, an itemization of the fees and costs associated with the sale, and the amount you still owe following all that.  This is normally referred to as the post-sale notice of deficiency.

If the finance company files a lawsuit in Florida seeking to recover for a deficiency, they have to comply with all the applicable Florida laws and court rules for a debt collection action.  They also have to comply with the laws that contain additional safeguards for the consumer.  For example, if properly challenged, they must prove that every aspect of the sale of your repossessed vehicle was “commercially reasonable“.  This may be difficult for the lender to prove if they do not bring the correct witnesses and documents to the trial.

Unfortunately, we know of numerous instances where the lender or the repo agent failed to follow Florida law in repossessing the vehicle, and then later when suing on a deficiency.  You can click here for a link to one such repo case that we have handled.

You can help protect your rights by keeping copies of all documents you receive relating to the vehicle and its repossession.  It is also important to save all the envelopes used to mail you your notices.  Finally, keep detailed notes about all aspects of the repossession, including every person you spoke with, and the date and time of those conversations.

If you believe your rights were violated during a repo, or if you need help defending against a repo deficiency action, please do not hesitate to call us on our toll-free number (1-888-834-5297) or send us an email.  As an experienced Florida consumer attorney and former automotive engineer, I would be honored to assist you.  As always, there is no charge to you for my initial consultation.  I handle such cases throughout Central Florida, from Flagler County to Polk County, from Brevard County to Lake County.

Let’s say you bought a car from a dealer, but it turns out the car is a piece of junk, rather than the reliable, high quality car they promised.  Or the dealer misrepresented the condition of the car or its mileage.  Perhaps the financing is not on the same terms you were promised.  Maybe the car broke down right away and doesn’t even run anymore.  You call the dealer, and they refuse to help; maybe they even try to sell you a second, more expensive car.  You call the finance company to which you are making payments, but they tell you to take it up with the dealer, and that it’s none of their business.  Meanwhile, they insist that you keep making your monthly payments because “we have a contract”.  You’re stuck . . . Or are you?

In many car sales, the Federal Trade Commission regulations require the contract to contain what lawyers call the Anti-Holder Clause.  This clause can be the key to winning your case.

This clause of the contract states the finance company to whom you are making payments is subject to all the claims and defenses you had against the dealer who sold you the car.  It doesn’t matter if it’s a well-known dealer chain or a “Buy Here, Pay Here” local car lot.  It doesn’t matter whether you are dealing with a car company’s finance company or a bank or a credit union.  If your contract contains this clause, they are bound by it.

What this means is that if you had any claims against the dealer, you can also bring those claims against the bank, finance company or credit union.  If the car dealer engaged in fraud or misrepresentation, deceptive or unfair acts or practices, breached a warranty, engaged in odometer rollback or violated any other state or federal laws, you can sue either the car dealer, the finance company to whom you are making payments, or both.  Depending on the facts, it may also allow you to stop paying the finance company or credit union as a result of the dealer’s violation of law.  However, that bank, finance company or credit union can then potentially recover their money back from the dealer.

The moral of the story is don’t give up.  Just because the dealer and the finance company tell you that you have no rights, it’s not necessarily true.  As an experienced auto fraud attorney and consumer protection lawyer, I would be honored to review your paperwork and to advise you of your rights during a free initial consultation.  Just call the Rudnitsky Law Firm on our toll-free number, 1-888-834-5297, or send us an email through our contact form.

According to a news report, Chrysler’s lawyers have sent a threatening letter to the Seminole County Schools.  Chrysler, who owns the Dodge brand, claims that the logo of the Ram mascot for Lake Mary High School violates its trademark, and thus breaks the law.

The fact that Lake Mary High School should never be confused with a Chrysler vehicle apparently is not enough.  Neither is the fact that Lake Mary has partnered with at least one Chrysler dealer, who did not object to the use of the Ram logo.  Neither is the fact that Chrysler, who emerged from bankruptcy in 2009, is now owned in part by we-the-taxpayers.  If it wasn’t for government support, funded by our taxes, Chrysler would probably have been liquidated in bankruptcy and would not exist any more.  It seems that Chrysler should have more serious things to worry about than whether a local Central Florida school like Lake Mary has a logo similar to that of Chrysler’s Dodge Ram.

Our client bought a new car from Mercedes Benz of South Orlando.  They told him that the car was his, they applied on his behalf for the car’s tag and registration, and he insured the car as required by Florida law.  However, a few days later, they tried to tell him that the deal had fallen through; they also told him they could get the deal approved if he came back in and signed a new contract at a higher interest rate.  This bait and switch practice is also known by other names:  “yo-yo” deal, spot delivery, bailment, or seller’s right to cancel.  To make matters worse, they did not return his trade-in vehicle that he had used for his down payment.  Eventually, the dealer had the vehicle repossessed at night.

We strongly disagreed with the dealer’s claim that it was legally entitled to cancel the contract, and worked diligently on behalf of our client.  Even without filing a lawsuit, we were able to convince the dealer to not only return the car to our client and honor the initial quoted interest rate, but also to provide a discount to which our client had been entitled but did not receive.  Thus, the settlement resulted in our client receiving the car he had been promised, but with lower monthly payments than originally quoted.

If you were the victim of a bait-and-switch scam here in Central Florida (including Orange County, Seminole County, Volusia County, Lake County or Brevard County), we would be honored to help you enforce your legal rights.

Our client stopped at used car dealership called Automotive Link in Longwood, Florida. He was looking for affordable but reliable transportation, because he needed a dependable car for his job. Automotive Link pointed out a car to him that they claimed met his criteria, and told him that it had been inspected by its mechanic. After buying the car, our client began experiencing problems right from the beginning. Even after several repairs, the car continued to be unreliable, and finally completely broke down.

When we sued the dealer, much of its defense focused on the fact that our client had signed an “As Is” clause when buying the car. However, we argued that the “As-Is” provision in the contract did not allow the dealer to avoid liability for any misrepresentations the dealer made in order to get our client to sign the contract. We defended our client’s rights vigorously, and argued that our client should get all his money back, and the dealer should be forced to take the car back. We were able to undo the deal, forcing the dealer to take back the vehicle and refund our client’s money.

So, remember that you have legal rights that you can enforce when you buy a car, even if you signed an “as is” disclaimer. If you find yourself in this situation, you should promptly contact us for a free consultation to help you determine your rights.

In the past few weeks, several rumors have circulated among car dealers and car buyers relating to the Cash for Clunkers (Cash 4 Clunkers or C4C) program.  Some of those rumors have claimed that the amount of the payment the dealer receives on behalf of the customer’s trade-in would be reduced if either the car dealer or the car buyer/consumer owed back taxes.

Those rumors are simply not true.  The government agency responsible for the Cash for Clunkers program, the U.S. National Highway Traffic Safety Administration, has confirmed that they are not taking any money that may be owed to the government from the Cash for Clunkers payment.

Don’t let a dealer try to get extra money from you by claiming that they did not receive the full amount of the rebate from the government.  If a dealer tries to tell you that their Cash 4 Clunkers payment was reduced by the government due to back taxes, report that dealer to the National Highway Traffic Safety Administration.  If the dealer insists you need to make an additional payment to them, seek the assistance of an experienced car lawyer here in Central Florida.

Many people think odometer rollbacks are a thing of the past, since most new cars have electronic odometers to display mileage.  However, odometer rollbacks still occur with some frequency.

In one of our cases, our clients purchased a used vehicle from a local buy-here-pay-here car lot in Seminole County.  Later, when they took the car in for service to a mechanic, they discovered that the car had previously had service work done at a higher odometer mileage.   This meant that the odometer had been rolled back before they bought the car.

We were able to negotiate a quick settlement on behalf of our clients, who were able to return the car, void the contract, and recover their incidental and consequential damages.

We have had several calls from consumers with concerns about how dealers were handling the Cash For Clunkers (Cash 4 Clunkers or C4C) program.  One type of issue is when the dealer promised and provided a set rebate amount, but then contacts the customer and says they need to “redo” the deal because the rebate fell through.  Sometimes they say the traded-in car didn’t qualify after all.  Sometimes they say the consumer did something to make the traded-in car ineligible.  Then, the dealer typically either demands the new car be returned or that the customer come up the extra $3500 to $4500 difference in cost right away.

Just because a dealer says you have no choice but to follow their instructions doesn’t mean that is legally correct.  You have legal rights, and should not be intimidated by the dealer.  We offer a free initial consultation, and would be happy to discuss your situation with you.

Auto Fraud refers to a whole series of cases in which a car dealer (franchised dealer or buy-here-pay-here dealer) or other automotive facility perpetrates a fraud on a consumer.  Examples of such auto fraud cases include:

• Odometer rollback – this is when a dealer or other person intentionally rolls back the odometer mileage, usually to inflate the price of the car or to claim that it is still subject to a manufacturer’s warranty.
• Rebuilt wrecks – these are cars that have been involved in a serious crash that may have caused the insurance company to “total” them, but are then rebuilt and sold without any disclosure of the pre-existing damage.  These cars can be a significant hazard not only to the consumer buying the car, but also to other motorist who can be affected when the rebuilt wreck loses control on the road.  Please note that CarFax will not always disclose all prior wrecks, and some dealers use this to their advantage.
• Faulty repairs – this covers repairs that were not performed properly, as well as repairs that were never performed at all.
• Deceptive sales techniques – this type of deception can cause a buyer to believe he or she is purchasing a car when in reality they are leasing it, or misrepresents the condition or price of the car, or other aspects of the sales or financing process.
• Failure to comply with title laws – some dealers try to hide prior ownership history or mileage disclosures by obtaining new titles that no longer show the history they are trying to hide.  Other dealers take salvage cars to states having lax titling laws, rebuild them, and get a new title that no longer lists the car as being a salvage car.
• Service contracts – some service contracts are virtually useless, because the company frequently denies coverage, often blaming the consumer.  Of course, both the dealership and the service contract provider make a handsome profit from selling this service contract.  The consumer thought they were buying peace-of-mind, when they were really buying a headache.
• Warranty – some manufacturers or dealers fail to honor their warranties, often claiming the vehicle was not properly maintained, or was abused.  In many cases, there is no evidence to support such a claim, but it doesn’t stop unscrupulous dealers from rejecting warranty claims for those reasons.
• Yo-yo sales – this is when the dealer tells you the sale is final and lets you take the car home.  Then, after you have taken the car home and showed it to your family and friends, the dealer tells you the financing fell through, and demands additional money.  Of course, if you try asking for the return of your trade-in, they tell you it’s gone.

My background as a former automotive engineer and expert witness allows me to help consumers in these and other types of auto fraud cases.  Please don’t hesitate to call us on our toll-free number, 1-888-834-5297, for a free consultation.  Or, if it’s more convenient for you, contact us by email or fax, and we will promptly respond.

Welcome to my new blog.  I am in the process of setting up this new blog in order to help Florida consumers, particularly those in Central Florida (Seminole County, Volusia County, Orange County, Brevard County, Lake County).  This includes the cities of Altamonte Springs, Altoona, Apopka, Cassadaga, Casselberry, Chuluota, Daytona Beach, DeBary, DeLand, Deltona, Eustis, Fern Park, Geneva, Heathrow, Lake Helen, Lake Mary, Longwood, Maitland, Mount Dora, Mt. Plymouth, Orange City, Orlando, Osteen, Oviedo, Pine Hills, Port Orange, Sanford, South Daytona, Tavares, Umatilla, Winter Park, Winter Springs, and Winter Park, among others.

My goal is to share information with Florida consumers about their legal rights to help them pursue justice in the areas of auto fraud (rebuilt wrecks, odometer rollbacks, deceptive sales and financing, etc.), credit card (including defense of credit card collection cases), debt collection (Fair Debt Collection Practices Act/FDCPA, abusive debt collectors, collection of old or non-existent debts), lemon laws and other similar areas.

Although I have over ten years of experience as a consumer justice attorney, this blog is brand new, becoming operational for the first time on August 21, 2009.  We appreciate your patience as we begin providing you information by posting in the next several days.