REPOSSESSION DEFICIENCY DISPUTE

Before using this letter, please read all the resource material HERE

Send each CRA the initial dispute letter before starting this program as it may be deleted simply by using the initial DISPUTE LETTER

This letter is for the purpose of disputing collection activities on a deficiency from a motor vehicle repossession.

It may be used AFTER 2 years from the date of the repo sale, providing there has been no filed claim for a judgment.

It should not be used if you have been sued, or if the repossession is less than 2 years ago.

It can be used earlier than 2 years from the repo date if you are SURE you received no notices of the sale.

To look up the required data on the vehicle, you will need the VIN #, go to

CARFAX

Send a copy to EACH of the parties CRRR.

Your Name

Your Address

Date

Name Of Collection Agency

Address of CA

Name of Original Creditor

Address of OC

Name of Original Seller (car dealer)

Address of OS

Re:

Account # (ca #)as reported to (list CRA's)

Account # (oc #)

(Make -model -vin# -sale date)

To whom it may concern;

I am writing in regard to the above referenced accounts and transactions.

This is not a refusal to pay, but a notice that this account is disputed.

This vehicle was repossessed by (name of OC) in the State of (X) on or about, xx/xx/xxxx, and resold on or about xx/xx/xxxx.

Under the laws of the State of (State of Repo) UCC § 9.506 and State RISA and MVISA statutes a deficiency can not be claimed unless all of the required notices were properly and timely given, and all of the allowable redemption and cure time limits were adhered to.

Please provide copies of the legal notices and proof of the commercially reasonable manner of the resale of the subject vehicle.

If no such proof is provided within 14 days from receipt of this notice, the alleged claim of a deficiency will be considered null and void, and any continued collection activities, or continued reporting of this invalid claim on my credit reports will be considered a violation of the FDCPA and FCRA.

In addition, if you singularly or severally fail to comply with the above requests, I reserve the right to seek damages against all parties, under all available State and Federal statutes and UCC § 9 remedies.

Sincerely,

XXXX

FOLLOW UP DISPUTE LETTER TO CRA

Send this to the CRA if you have NOT received any reply after 14 days,use personalized stationary and send it priority mail with proof of delivery but NOT certified or RR

CRA address

I am writing you regarding account # xxxx on my report #xxxx from XXXX. This account is a fraudulent entry on my report. I have disputed it with (name of OC) and (name of CA). I have no such account from this creditor for this date in this amount.

Please advise me of the manner of any verification of this fraudulent account, and the name and address of the verifying party as I will be taking appropriate legal action and filing complaints with the FTC, CFPB and (name of your State)Attorney General's Office.

Please note that your Credit Reporting Agency is now subject to Federal consumer financial laws, including, among others, the FCRA and Title X of the Dodd-Frank Act, and related regulations including a ban on “Abusive” Acts or Practices.( Section 1031 of the Dodd-Frank Act )

Sincerely,

XXXXXX

Resource Material

REPO-DEFICIENCY RESOURCE PAGE

CASE LAW REFERENCE
- 4 YEAR SOL

EXCERPTS FROM CASE LAW

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION A-3166-00T1

FORD MOTOR CREDIT COMPANY, Plaintiff-Respondent, v. GILBERTO ARCE, Defendant-Appellant. Argued February 4, 2002 - Decided February 26, 2002 Before Judges Havey, Coburn and Weissbard. On appeal from Superior Court of New Jersey, Law Division, Special Civil Part, Middlesex County, Docket No. DC-9718-00.

Defendant Gilberto Arce appeals from an order for summary judgment in favor of plaintiff Ford Motor Credit Company (FMC) awarding it $5,905.96 plus costs, representing a deficiency owed by defendant under a retail installment contract executed by him to finance the purchase of a used car. The sole issue is whether FMC's suit is barred by the four-year statute of limitations under Article 2 of the Uniform Commercial Code, N.J.S.A. 12A:2- 725 (§ 2-725). Following the Supreme Court's holding in Assocs. Discount Corp. v. Palmer, 47 N.J. 183 (1966), we conclude that the action is barred and accordingly reverse.

Article 2 of the Uniform Commercial Code (U.C.C.) applies to "transactions in goods." N.J.S.A. 12A:2-102. Article 2's statute of limitations, § 2-725(1), provides that "[a]n action for breach of any contract for [the] sale [of goods] must be commenced within four years after the cause of action has accrued." A cause of action accrues "when the breach occurs . . . ." § 2-725(2).See footnote 11

The Court added: a deficiency action must be considered more closely related to the sales aspect of a combination sales-security agreement rather than to its security aspect and be controlled by the four year limitation in . . . § 2- 725.See footnote 22 [Id. at 187-88.]

The Palmer decision has been cited with approval by courts in other jurisdictions. See First Nat'l Bank v. Chase, 887 P.2d 1250, 1251-53 (N.M. 1994); Scott v. Ford Motor Credit Co., 691 A.2d 1320, 1323-26 (Md. 1997). In our view, Palmer is dispositive.

We hold that the four-year statute of limitations under § 2- 725 applies in this case. Accordingly, FMC's deficiency suit is statutorily barred. We therefore reverse the judgment in favor FMC's favor.

Tennessee Ruling
Commercially reasonable and proper notice

THE FOLLOWING SITE HAS ALL THE STATE'S REPO LAWS LISTED

STATE REPO LAWS

Cure statutes are in effect in two dozen states.

These statutes provide that a consumer debtor has a right to cure a default before repossession can occur.

The statutes generally require that after default and before repossession, the creditor must send a notice to the debtor, and the notice must advise that the debtor has so many days (generally 20) in which to cure the default by bringing the account current.

A few states have cure statutes that only apply in very limited circumstances, such as rent-to-own agreements. Other states have cure statutes that are rather broad, and these states are:

CA, CO, CT, DC, IA, IL, KS, MA, ME, MS, MO, NE, NH, NY, OH, PA, SC, WV and WI.

Under some state Retail Installment Sales Acts, a creditor repossessing a vehicle must send a notice of default and right to cure within five business days after taking possession of the collateral. The notice must specifically state the circumstances constituting the default and must include an itemized amount the debtor is required to pay in order to cure the default.

Note that the debtor has the right under some state laws (UCC 9-506), unless otherwise agreed in writing after default, to redeem the vehicle at any time before the dealership has disposed of it or has entered into a contract for its disposition.

The dealer must make the vehicle available for inspection by the debtor during reasonable hours during the period between the time the dealer retakes possession and the expiration or exercise of the debtor's right to cure his default.

Note that a debtor's right to cure his default may not be exercised more than once for any single debt.

Right to Cure

Several states now require a prior notice of Right to Cure be sent before recovery can be executed. Right to Cure is legal notice that an account is past due and gives a specified time for the debtor to pay a specific amount to cure the delinquency.

The last day for payment in the eight states is as follows:

Colorado—20 days from notice date

Iowa—21 days from notice date

Kansas—20 days from notice date

Massachusetts—21 days from notice date

Maine—20 days from notice date

Missouri—15 days from notice date

South Carolina—20 days from notice date

SOME STATE LAWS- SEE STATE LISTING ON HOME PAGE FOR LINKED STATUTES;

California, where creditors must not only comply with the resale requirements of §9-610 but also the provisions of the Rees-Levering Motor Vehicle Sales and Finance Act (Civil Code, §2981 et seq.). and §17200 of the California Business and Professions Code.

Conn:REPO LAW

Georgia repo law

Maryland Repo Law

TENN. CASE LAW

REPOSSESSION STATUTES FOR ALL STATES