Question: i was told that i owed money for a bad check on a car.. but i was never served court papers and the car was taken away.. what are my options?
General Information: Arizona Auto Repossession laws:
If you do not make payment(s) when due, you will be considered to be "in default' under the vehicle financing contract . If you "default' under the contract, the lender can take possession of the vehicle as long as it does not breach the peace. You are not required to give the vehicle to the lender if the lender has not obtained a court order, but the lender does not have to notify you of its intention to repossess the vehicle. See, ARS § 47-9609.
If you are in default, the lender may sell the vehicle after it repossesses it. The proceeds of sale will be used to pay for the expenses of repossession and sale, and then the balance of the loan. See, ARS § 47-9610 and See, ARS § 47-9615.
If the vehicle transaction was for personal, family or household purposes, and the lender opts to sell the vehicle after repossession, the lender must notify you of its intent to sell. See, ARS § 47-9615.
You may be able to get the vehicle back before it is sold, if you pay the full balance due under the contract and pay the lender’s repossession expenses. See, ARS § 47-9623.
If the sale amount of the vehicle is not enough to satisfy the balance of your obligation and the costs expended by the lender, you will be liable for the deficiency. (The lender is permitted to sue you to recover the difference). See, ARS § 47-9615.
June 17, 2008