Reposession

Feb 15, 2010

respossession of equipment
by: Gerri

Gina,

Thanks for submitting your debt collection question on our debt collection questions and answer page.

There is a common misconception that as long as you pay your creditors/collectors something, they can't sue you, repossess your vehicle/equipment, or turn your account over to collections.

If you are in default on your contract with the creditor, it is likely they are able to repossess the collateral for the debt. Of course, this will depend on the terms of your contract, the type of debt, and your state's laws.

I assume this is a business debt, not a personal one, since equipment is involved. If it is a business debt, then the Fair Debt Collection Practices Act does not apply. If it is a personal debt, then the lender must follow that law.

If you work out something with the lender to catch up on your loan, it is important you get that in writing. It's also important that they agree, in writing, not repossess the equipment if you meet the terms of the new agreement.

I would strongly encourage you to find out what laws/consumer protections apply in your situation. You can contact a local consumer law attorney or call the Collection Complaint Hotline at 888-711-5143 for a free, confidential consultation.

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Feb 15, 2010
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Submitted by: Gerri

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Gina, <a href=" http://www.debtcollectionanswers.com/http://www.debtcollectionanswers.com/Debt-Collection-Questions.html">Thanks for submitting your debt collection question on our debt collection questions and answer page. </a> There is a common misconception that as long as you pay your creditors/collectors something, they can't sue you, repossess your vehicle/equipment, or turn your account over to collections. If you are in default on your contract with the creditor, it is likely they are able to repossess the collateral for the debt. Of course, this will depend on the terms of your contract, the type of debt, and your state's laws. I assume this is a business debt, not a personal one, since equipment is involved. If it is a business debt, then the Fair Debt Collection Practices Act does not apply. If it is a personal debt, then the lender must follow that law. If you work out something with the lender to catch up on your loan, it is important you get that in writing. It's also important that they agree, in writing, not repossess the equipment if you meet the terms of the new agreement. I would strongly encourage you to find out what laws/consumer protections apply in your situation. You can contact a local consumer law attorney or call the Collection Complaint Hotline at 888-711-5143 for a free, confidential consultation.

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