Protecting the Rights of Consumers For Over 25 Years

Question: What do I do if now I get a bill from the dealer for what they paid the bank to pay off the loan? I bought a car in 2012, fell behind in payments after losing my job, car was repossessed but not by bank but by dealer. We call the bank and they tell us the dealer can repossess when they want. I was never informed of this and nowhere on my contract says that I let them keep the car.

Answer: Generally a bank that buys a retail installment contract from a dealer has the right, upon the consumer’s default, to sell it back to the dealer. The dealer in such a case has the same right to repossess as the bank and the same obligation as the bank to dispose of the collateral in a commercially reasonable manner, give notice of the proposed sale, etc.