If you are struggling to make your car loan payments, your vehicle could be repossessed by the lender. If you are facing repossession, it is crucial that you understand your car repossession rights in Wisconsin. Doing so could protect you during the repossession process. It could also provide you with recourse if you are the victim of an unlawful repossession.
The consumer protection attorneys at LawtonCates have served clients in Wisconsin for over 60 years from our offices in Madison and Jefferson. We protect consumers from fraudulent, deceptive, and misleading practices, including illegal repossessions.
If you believe a lender repossessed your car in violation of the law, you need to seek legal advice. Contact our Wisconsin consumer protection law attorneys to discuss your case during a free consultation.
Understanding Car Repossession in Wisconsin
Car repossession in Wisconsin is governed by the Wisconsin Consumer Act (WCA). The act is a set of state statutes that includes a specific section on Wisconsin car repossession laws. The law establishes clear procedures and timelines for repossession and prohibits unfair or unreasonable practices by the lender.
If lenders violate the law when repossessing your car, you may have the right to recover your vehicle or even collect financial damages.
When a Lender Can Legally Repossess Your Vehicle
A lender can legally repossess your vehicle if you are in default. You are in default if you are more than 10 days late on one full car payment. However, your specific loan agreement may contain a different definition of default, so it is important that you review the terms of your loan.
Your Rights Before Repossession Occurs
A lender cannot simply show up out of the blue and take your car. Before repossession occurs, you have the right to receive notification through a right-to-cure notice, also called a default notice.
The lender must send you a written default notice and specify how much you owe to bring your account current. You have 15 days from the date you receive the notice to cure your loan by paying the past-due amount and any fees. If you do not cure the loan within the allotted time, the lender can conduct a self-help repossession and take the vehicle without a court order.
If you believe your lender has made a mistake and you received the default notice in error, you also have the right to demand that the creditor take legal action to repossess the vehicle. The lender may then have to file a lawsuit to repossess the car instead of being able to do a self-help repossession.
Your Rights After the Vehicle Has Been Repossessed
After a lender repossesses your vehicle, you can get it back. You have 15 days to pay the lender the past-due amount, along with any additional fees and penalties. You may also have to pay the towing fee for the repossession and other costs incurred by the creditor.
If the lender committed an illegal car repossession in Wisconsin, you have the right to sue for damages. You may be able to get your car back without any obligation to make further payments. You may also be able to recover payments already made on the loan, as well as attorney fees, court costs, and other expenses caused by the unlawful repossession.
Our consumer protection lawyers stand ready to help you determine if you may have a case based on the violation of your car repossession rights in Wisconsin.
What Lenders and Repossession Agents Cannot Do
Lenders’ actions are restricted when conducting a repossession. When doing a self-help repossession, lenders:
- Cannot take your vehicle from private property – A lender cannot take your car from your driveway or garage without your permission. To do so, they must get a court order. They can take your car if it is parked in a parking lot, on the street, or in another public place.
- Must avoid breaching the peace – The lender or the person doing the repossession cannot use force or threats of violence that amount to a breach of peace.
Repossessed Vehicle Sale & Deficiency Balances
If you do not pay your past-due amount, the lender can sell your vehicle at auction to recover what you owe.
If the lender sells the car for more than your outstanding loan balance, you may receive the difference. If the car sells for less than you owe, you may still be on the hook for the difference, known as a deficiency balance. However, the lender must make a reasonable attempt to sell your vehicle at a fair market price.
Signs of Wrongful or Illegal Vehicle Repossession
A wrongful or illegal repossession can be stressful, costing you money and time. Thankfully, you do have legal remedies if it occurs. Our consumer protection law attorneys can help you with a claim for damages if a lender violated your Wisconsin car repossession rights.
You may be the victim of an unlawful repossession if your lender began the process before you were legally in default or if your lender failed to send you a default notice. You may also have grounds for a wrongful repossession claim if the lender did not give you time to cure your loan before repossession or to settle your debt before selling your car at public auction.
Additionally, if a lender invaded your privacy, trespassed on private property, or breached the peace during repossession, the process may have been done illegally.
Contact Our Wrongful Repossession Attorneys for Help
LawtonCates advocates for consumers in Wisconsin. We have experience with car repossession and can protect your rights if a lender wrongfully or illegally repossessed your car. We want to help you get your vehicle back and seek damages, which may include recovering your past payments and erasing your future loan obligations.
We serve clients in Madison, Jefferson, and throughout Wisconsin. We take an aggressive approach and fight hard to get the best results possible for our clients.
To learn more about how our Wisconsin consumer protection attorneys can help you, contact us online or call today for a free consultation.