From
this article in the New York times, it seems like the reporter is amazed to find that lenders are suing borrowers for deficiencies arising out of automobile repossessions. Those of us in the consumer law trade are not surprised at all. We have seen the rise in subprime lending and a rise in post-repossession deficiency lawsuits.
The New York Times singled out Credit Acceptance Corporation as a frequent filer of court cases relating to vehicle reposessions. That is true in Indiana. From 6/30/2016 to 6/30/2017, Credit Acceptance Corporation filed 404 cases in Indiana according to my search of the state mycase court datavase. That’s well more than one case a day. Behind each of these cases is a sad story.
In my opinion, you will never stop repossessions completely as people sometimes face unexpected hardships in paying a loan. What I think we can cut back on are repossession sales where virtually nothing is received for the vehicle. If you have had a vehicle repossessed, you should be aware that if the vehicle is not sold in a commercially reasonable manner after repossession, you may not have to pay the balance of the loan, but you will probably need a lawyer ot enforce your rights. If you are sued for a deficiency after an auto repossession, you should call a NACA consumer lawyer in your area. You can find one with
this link.