Wrongful Repossession Lawyer for Auto Cases in Maryland

If you experienced a wrongful repossessionin Maryland, Whitney, LLP’s wrongful auto repossession lawyers can help. Maryland repossession law includes significant protections for consumers against wrongful repossession practices. When these laws are violated, consumers may be able to recover significant compensation.  Due to the many dishonest banks, lenders, debt collectors and towing companies, illegal repossessions occur often in Maryland.

If you have a potential claim involving a wrongful repossession, contact Whitney, LLP for a Free Case Evaluation at 410 583 8000, or use our Quick Contact Form.

When a wrongful repossession occurs, Whitney, LLP’s wrongful auto repossession lawyers can help consumers fight back, which may include:

• recovering the vehicle,
• recovering personal property from the car,
• cancelling the deficiency owed on a loan, and
• recovering compensation for damages for economic loss, lost wages, property damage and emotional distress. Punitive damages may also be available depending on the facts.

Whitney, LLP’s wrongful auto repossession lawyer offer representation to consumers in a variety of repossession cases including:

• inadequate notice of the amount owned and intent to repossess,
• improper notice after the repossession, and
• wrongful conduct of the repossession agents or towing company during and after the repossession, such as fighting, breaking and entering and other illegal behavior.

If you experienced an illegal repossession in Maryland, call Whitney, LLP’s wrongful repossession attorneys for a Free Case Evaluation. Whitney, LLP’s consumer lawyers have experience recovering significant compensation for consumers who have been harmed by a variety of predatory businesses.

Whitney, LLP represents clients across Maryland, including Baltimore, Bel Air, Annapolis, Frederick, Bethesda, Rockville, Gaithersburg, Columbia, Towson, Bowie, Laurel and Salisbury.

This blog explains Maryland wrongful repossessions, the legal rights consumers have after a wrongful repossession, Maryland’s auto repossession laws, common causes of wrongful repossession, and how Whitney, LLP’s Maryland auto repossession lawyers can help victims fight back.  Watch our YouTube Channel for more information on the cases we handle.

Contact Whitney, LLP for a Free Case Evaluation at 410 583 8000, or use our Quick Contact Form.

Watch our YouTube Channel for more information on the cases we handle.

Understanding Auto Repossession in Maryland

Auto repossession in Maryland involves a highly regulated legal process where lenders recover vehicles from borrowers who have missed payment under a loan agreement. In Maryland, the repossession process does not include requiring creditors to have a court order to repossess a vehicle.

Sometimes the actual lender orders the repossession, and other times, the debt is sold to a debt collector, who then engages in the repossession. Debt collectors that purchase unpaid auto loans often cause illegal repossessions to be performed due to not having accurate records and using old information.

The Role of a Repossession Lawyer

After an illegal repossession, an experienced auto repossession lawyer can make the difference between being stuck with a deficiency on your credit report or recovering compensation for a wrongful repossession. that did not follow Maryland repossession law. 

Notice and Disclosure Requirements

Notice and disclosure requirements are vital components of the auto repossession process in Maryland. Depending on applicable Maryland law, before repossessing a vehicle, the lender may provide the borrower with a notice of repossession. This notice informs the borrower about the future potential repossession and possible ways to prevent it.

Additionally, after repossession, the lender must send a follow-up notice detailing the sale of the vehicle, including auction information. This gives the borrower a chance to redeem the vehicle by paying the amount owed before it is sold.

A failure to comply with Maryland repossession law provides the consumer leverage to fight back, which an experienced Maryland auto repossession attorney will apply.

Whitney, LLP has experience representing consumers in claims of illegal repossession involving lenders, debt collectors and towing companies.

Legal Options After Wrongful Repossession

Dealing with repossession can be overwhelming, particularly after a wrongful repossession. The first step is to collect all notices and documentation regarding the repossession, as well as the finance agreement or contract that you borrowed money with to purchase the repossessed vehicle.

By reviewing this documentation, an wrongful auto repossession lawyer can begin to determine what laws apply and how best to deal with the illegal repossession.

Filing a Lawsuit

While filing a claim with the BBB or the Attorney General’s may seem like a good idea, Whitney, LLP has found that these complaints often do not result in a prompt or meaningful result. The Maryland Attorney General’s Mediation Program is optional for businesses to participate in, and many businesses simply ignore those letters.

Instead, we have found that in cases involving a violation of consumer rights, filing a lawsuit is often the most effective way to deal with a business behaving illegally.

Business that behave illegally, including performing illegal repossessions, can ignore consumer complaints, but ignoring a lawsuit can quickly lead to serious consequences.  Whitney, LLP’s consumer lawyers have experiencing recovering default judgments against businesses that ignore lawsuits.

Contact Lender and Recover Vehicle

Reaching out to the lender can sometimes resolve misunderstandings and facilitate the recovery of your vehicle. Having an auto repossession lawyer contact the lender can send the message that the lender will be unable to get away with further illegal action, and can sometimes lead to a much faster resolution of the situation.

Reinstating the Loan

In some cases, reinstating the loan might be what the consumer wants. If so, an experienced auto repossession lawyer can help negotiate the reinstatement.

Contact Whitney, LLP for a Free Case Evaluation at 410 583 8000, or use our Quick Contact Form.

Compensation for Wrongful Repossession

Significant compensation may be recovered for wrongful repossessions. Illegal repossession can take a huge toll on an individual or family, including lost personal property, lost wages, lost employment, missed doctors appointments, missed school for children and even eviction due to job loss.

Compensation can be significant, depending on the facts of the case, including on how long the vehicle is wrongfully taken from the consumer and whether there was any good-faith basis for the repossession.

Economic Damages

Economic damages are designed to compensate for the direct financial losses resulting from a wrongful repossession. These damages could include reimbursement for repossession costs that you should not have incurred or any fees paid to recover your property.

For instance, if your vehicle was unlawfully taken, you might be entitled to compensation for the extra expenses you incurred as a result, such as rental car fees or additional transportation costs.

A deficiency balance occurs when the sale of the repossessed item does not cover the full amount of the debt. Working with a repossession lawyer can help ensure that you recover from these financial losses and potentially avoid a deficiency judgment against you.

It is essential to document all related expenses accurately to strengthen your legal claim for economic damages.

Property Loss

In addition to the vehicle itself, and equity in the vehicle, personal belongings inside the repossessed vehicle are often discarded, stolen or damaged. Maryland repossession law allows vehicles owners to recover personal items from a repossessed vehicle , but non-compliance is common.

If you’ve lost personal items during the repossession process, you may be entitled to compensation for those losses. A detailed inventory of the missing or damaged items and proof of ownership can support your claim.

A repossession lawyer can navigate the recovery process, fighting to regain possession of your property . It’s important to act promptly, as time can affect the ability to recover or receive compensation for lost property.

Emotional Distress

Wrongful repossession can lead to significant emotional distress. Repossessions often can cause anxiety, humiliation, and stress.

Whitney, LLP’s repossession lawyers have experience recovering emotional distress for consumers who are treated poorly and taken advantage of.

Contact Whitney, LLP for a Free Case Evaluation at 410 583 8000, or use our Quick Contact Form.

Common Reasons for Wrongful Repossession

Illegal repossessions occur for a number of reasons. Frequent issues that Whitney, LLP’s wrongful repossession lawyers deal with are:

Breach of Peace Violations

Breach of peace violations can include such as physical harm, damaged property, trespassing, threats or fighting by repossession agents and towing companies.

If a repossession agent enters your closed property without permission or uses aggressive behaviors, it may constitute a breach of peace. Violating these standards could result in the repossession being illegal and provide grounds for legal action.

Consumers should always take video when a repossession agent or towing company takes a vehicle, and especially when they behave illegally. This will be powerful evidence to be used in court.

Lack of Notice

If the notice required by law ifs.not provided before and/or after the repossession, consumers have legal rights that can significantly help in dealing with a repossession.

Administrative Errors by Lender

Poorly executed administrative actions can result in wrongful repossession. Errors are often made due to such as miscommunication between the creditor and repossession company.

These errors often include:

• incorrect calculation of a deficiency balance,
• failure to process payments,
• failure to timely record loan payoffs, and
• repossessing the car after it was sold or transferred .

Whitney, LLP’s illegal repossession lawyers help consumers fight back against these illegal practices.

Rights to Redeem the Vehicle

In Maryland, consumers have the right to redeem their repossessed vehicle. This means they can regain ownership by paying the full amount owed, including any additional repossession costs.  A repossession lawyer can help redeem the vehicle before it is sold.

Maryland Repossession Law

Repossession law in Maryland can be complex depending on the law applied at the time of the sale. There are three repossession laws that may apply in Maryland, in addition to other laws that are often violated during illegal repossessions.

Whitney, LLP’s experienced wrongful repossession lawyers understand which laws apply and apply them to fight back against illegal repossessions.

CLEC

The Credit Grantor Closed End Credit Provisions, commonly known as CLEC, is one of the most prevalent statutes governing repossessions in Maryland. Under CLEC, consumers have specific rights during the repossession process.

Retail Installment Sales Act

The Retail Installment Sales Act (RISA) applies to transactions involving the sale of goods through installment payment plans, such as auto loans. Generally, this is the default law that applies to the sale of vehicles unless the finance contract opt-in to CLEC.

Article 9

Article 9 of the Uniform Commercial Code (UCC) applies to secured transactions, providing a framework that permits creditors to repossess and sell collateral if a borrower defaults. Under Article 9, repossession companies must adhere to strict guidelines to lawfully reclaim assets without breaching the peace.

The Process of Repossession in Maryland

Maryland repossession law provides guidelines on how secured creditors can lawfully recover property from borrowers in default.

Pre-Repossession Communication

Pre-repossession communication is a critical step in the repossession process. It provides both parties the opportunity to resolve alleged debts before beginning formal repossession procedures. In Maryland, depending on the applicable law, lenders may send a notice of repossession to borrowers in default, informing them of their intent to reclaim the secured property.

If pre-repossession notice communication fails to result in the debt being paid, lenders will proceed with the actual repossession process.

Retrieval of Personal Property

Lenders must allow borrowers to retrieve personal property left in vehicles during auto repossessions. Often times the towing company will refuse access and otherwise discard property and be extremely rude and unhelpful to consumers after their cars are repossessed. When their behavior is illegal, consumers can fight back.

Post-Repossession Steps

Maryland law requires that lenders provide a clear notice of sale to the borrower, detailing the time and place of the auction or sale. Proceeds from the sale are applied towards the outstanding debt, and any deficiency balance may result in a deficiency judgment against the borrower if the sale amount doesn’t cover the entire debt.

However, vehicle owners, on the other hand, have rights to recover personal property and may redeem the repossessed property before it is sold by paying the full amount due, including fees.

Often times lenders seek to recover fees they are not entitled to, giving consumers legal rights to fight back.

Daniel Whitney, Jr. and Daniel Whitney, Sr. of Whitney, LLP

Maryland Wrongful Repossession Lawyers – Whitney, LLP

Whitney, LLP’s repossession attorneys have experience fighting back for consumers facing wrongful repossession.

If you have experienced an illegal repossession, contact Whitney, LLP for a Free Case Evaluation at 410 583 8000, or use our Quick Contact Form.