Auto Loans Unlawful Repossession

[oneslaboff]

Jurisdiction

Arizona

My son has been making payments on a car for 3years and yes some have been late, but they were all made. The final payment was due Dec 25th for $375.00 and on Dec 23rd the car was repossed. With the holiday was unable to do anything. On Monday we learned that that a payment was not made posted to his account in August. We asked why weren't we contacted and they claimed they have been calling and leaving messages. Also learned they had 2 phone numbers on file, and the 1st number is not a valid number. We for fact that they do have the correct number because they have called in the past prior to this concerning payments. So now a measly $375 dollar payment has turned into a $1400 nightmare. My questions are: Is the finance company required to send a written notification in the mail concerning the default of payments? Second question is the contract I signed valid because I have been doing some research this is what I read:
(When you buy a car using a car loan, you sign a security agreement. For the agreement to be valid, it must describe the type of "collateral" (the car) and the value given, and you must have "rights to the collateral.A car can only be repossessed by the lender that took the car as collateral for your loan)
I feel that they were spiteful in taking the car and the company is a SUB PRIME LENDER. In speaking with them they are very rude and all this could of been prevented. Why would someone making payments for 3 years not continue on making the final payments so the car is paid off? Now he will have a repo on his credit for this even though we are redeeming the car.
Also learned that the finance company no longer goes by the name that we signed the contract with, should we have been notified that there was a change with the company name or whatever it is they did? And last question How do I dispute the repo on his credit. These types of lenders need to be stopped.

 

[despritfreya]

Your son (I assume he is the borrower - if not, then I mean "you") is bound by the terms of the contract he signed 3 years ago. If he did not like the terms or the lender (you mention sub-prime) he did not have to sign on the dotted line. The lender's rudeness today is not relevant. What is relevant is whether or not payments were 100% current and whether or not the vehicle was fully insured on the day the vehicle was repoed. If not, then the repo was proper and reporting the repo on the credit report is also proper. - And "no" - If there is a default, a vehicle lender does not have to give a warning before taking back its property unless such is provided for in the contract.

As to the name change of the lender, such is not relevant. Companies change names every day. Don't know how long you have been in Arizona but Valley National Bank became Bank One. Bank One became JPMorgan Chase. Do you really think a loan taken out when the bank was VNB somehow became unenforceable when VNB became Bank One or when Bank One became Chase?

If you or your son wants the vehicle back pay the amount demanded and move on.

Des.