When Your Car is Repossessed

Get your property back. Be careful what you sign. Contact the repossession agent to recover any personal items which were left in your vehicle. Sometimes repo companies charge you for retrieving your property. This is illegal but you may have to pay to get your stuff and consider legal options later. Make sure the lending 

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When your Car is Repossessed

GET YOUR PROPERTY BACK BE CAREFUL WHAT YOU SIGN Contact the repossession agent to recover any personal items which were left in your vehicle. Sometimes repo companies charge you for retrieving your property. This is illegal but you may have to pay to get your stuff and consider legal options later. Make sure the lending 

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Consumer Myth #2 – You can be arrested for failure to pay a debt.

Many consumers I speak to believe this. But it is not true. Failure to pay a debt is a civil matter, not criminal. This is true even for pay day loans. If debt collectors threaten filing criminal charges if you don’t meet their demand for immediate payment, not only is the threat a violation of 

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Consumer Myth #3 – A financing company or bank must give advance notice of intent to repossess.

Texas law does not require a finance company or bank to notify a consumer that their payment is late, that it is eligible for repossession or scheduled for repossession. Under most motor vehicle installment sales agreements, if your payment is one day late, the secured party may repossess your vehicle. Many people think there is 

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Consumer Myth #4 – When your car is repossessed, whether voluntarily or involuntarily, you have no further obligation of payment.

It is a rare instance when there is no further obligation after a car is repossessed. First, whether the repossession is voluntarily or involuntarily makes no difference in whether additional sums are owed. Also, a bank or finance company has the same duties under the law whether the repossession was voluntary or involuntary. If a 

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Consumer Myth #5 – A divorce decree can remove a spouse’s liability from joint liability such as a mortgage, car payment or credit card account.

This is not true unless the mortgage company, car finance company or credit card company is a named party to your divorce case. Before the divorce was filed, you had a contract with the mortgage company, car finance company and credit card company. A divorce decree cannot change either of those contracts without the permission 

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Consumer Myth #6 – If my car stops working, I may stop making payments.

Unfortunately, the car not working or suffering a mechanical breakdown is not a defense or legal reason to excuse making timely payments to the company financing your car purchase. If you miss a payment, under most financing contracts, and Texas law, the finance company may repossess your vehicle. One day late is sufficient to justify 

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Consumer Myth #7 – If I fail to pay a debt, my wages may be garnished.

In Texas, wages may not be garnished by creditors. This prohibition is established in the Texas Constitution. In Texas, wages may be garnished by the Federal Government for IRS debts or federally insured student loans. The Texas government may garnish wages for child support. No one not affiliated with either the Federal Government or the 

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Consumer Myth #8 – A Notice to Vacate must be delivered by a constable.

Not in Texas. Before a landlord may file an eviction lawsuit, the landlord must serve the tenant with a written Notice to Vacate. The notice to vacate may be served in several ways: hand delivered, mailed, posted on the inside of the front door, but NOT posted on the outside of the door. Often the 

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Consumer Myth #9 – If my landlord serves me with notice to vacate, I must move out.

A Notice to Vacate is merely a letter from the landlord. It is a demand letter, demanding that you move out. The letter ALLEGES that you, as tenant, have breached the lease. If you move out, following receipt of a Notice to Vacate, you will be breaking the lease, even if did not breach the 

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