My Car Was Repossessed; What Are My Rights?

If you’ve recently experienced a car repossession in Maryland, you must understand your rights and the legal requirements creditors must follow. This guide provides an overview of Maryland’s repossession laws, outlining the steps creditors must take and potential violations that could affect your situation.

My Car Was Repossessed: Creditor Obligations

In Maryland, creditors must send you a notice within five days after a car repossession. 

This notice must include:

• Your right to redeem your car: This explains how to get your vehicle back.
• Your liability for any deficiency: This outlines any remaining balance you owe after the car is sold.
• Where the vehicle is being stored: This tells you where your car is located.
• Where to send payments to redeem your car: This provides information on how and where to make payments to get your car back.

Creditors must hold your car for 15 days after repossession, allowing you to redeem it by catching up on your payments, covering any late fees, and reimbursing repossession costs if a discretionary notice was sent. However, if your car was previously repossessed within 18 months or if you engaged in fraudulent activity involving the car, you might have to pay the entire loan balance to redeem the vehicle.

Common Violations in a Repossession

While repossession laws are designed to protect both creditors and consumers, violations can and do occur. Creditors must notify you if your car will be sold at a public auction. If they fail to provide this notice, it could violate your rights. The amount you owe after your car is sold (deficiency balance) must be accurate. 

If the calculation is incorrect, you may be able to challenge it. Repossession companies and lenders cannot keep or sell personal property left inside a repossessed vehicle. You have the right to retrieve your belongings. Sometimes, the tow company hired by the creditor might take the wrong vehicle, either due to a mistake or inadequate verification processes; this is a clear violation of your rights as the vehicle owner.

My Car Was Repossessed: What to Do If Your Rights Have Been Violated

If you believe your rights have been violated during a car repossession in Maryland, there are steps you can take:

Document Everything: Keep records of all communications, notices, and transactions related to your repossession.

Contact the Creditor: Raise your concerns directly with the creditor to seek a resolution.

Seek Legal Advice: Consult a lawyer specializing in repossession laws to understand your legal options.

File a Complaint: You can file a complaint with the Maryland Department of Labor’s Office of the Commissioner of Financial Regulation if you suspect unlawful practices.

Repossession agents must avoid causing a breach of peace in Maryland during the repossession process. They cannot use force, threats, or other illegal methods to take your vehicle. If a repossession agent breaches the peace, it could be grounds for legal action against them and possibly the creditor.

Navigating the aftermath of a car repossession can be challenging, but understanding your rights and the obligations of creditors under Maryland law can help you take the right steps forward. Whether ensuring proper notification, accessing your personal property, or addressing potential violations, being informed is your best defense.

If you need assistance or believe your rights have been violated, don’t hesitate to contact our team of attorneys; they will guide you through the process and help protect your interests.