Are you behind on car payments, worrying about the Repo Man night and day? Recent statistics estimate 2 million U.S. consumers will experience an auto repossession in 2022. Suffering consumers fail to make timely car payments allowing financing company the right to take their car back — auctioning it to settle the debt, while the owner is stuck with no transportation. This invasion is rising. Although a company ordering a Colorado repossession does not need a court order, they must follow the law.
Exercising the right to repossess comes from a default to the lien contract a buyer signs when purchasing a vehicle. In Colorado, the lender must wait until the borrower is in default for 10 days before sending a document describing “right to cure”. Simply, the “right to cure” states the owner’s opportunity catch up on missed payments and stop repossession efforts. Be aware, during the last 12 months, if an owner has been in default and the lender already sent a “right to cure” notice, this step need not be repeated.
After sending the “right to cure” the lender must wait for an additional 20 days for you to cure the default. If you have not cured the default by the end of the 20 days, the lender may repossess the vehicle. Again, they have to do it legally.
What makes an ILLEGAL VEHICLE REPOSSESSION IN COLORADO?
- “Breach of Peace” is the most difficult law for the repo man to follow! Generally, a “Breach of Peace” prohibits them from engaging in actions of violence or disturbance. Any owner objection is all that is needed for their repo to be unlawful. Agents ignoring your objection is a big problem. They can try another time, but the agent has no protection from the law if he continues the repo. This gives the power back to you!
- Breaking into a secured yard or locked garage becomes criminal trespassing. In many cases, the agent may prosecution if they gain entry in these ways without your permission. If anyone captures this on video, you may have great countersuit leverage.
- Damaging property to take the vehicle — such as doors, fences, or locks is illegal. Did you get pictures of broken locks or damage to your property committed during the repo?
- Excessive noise, yelling, disturbing your neighborhood can all be considered breach of peace. At least, write down your recollection of the incident. Did you get their license plate, company name on the tow truck, or any other identifying information? Did the agent confront or threaten you? Was a neighbor witness to the event? This testimony may help later at trial.
- Verbal threats or methods of confrontation to incite fear of consequence are also illegal.
- Although rare, battery may be charged if they tow your vehicle with someone inside. Moving an occupied vehicle can be viewed as kidnapping.
- Colorado repossession law also states Repo Men are also subject to the Fair Debt Collection Practices Act. They are not allowed to misrepresent their identity. Illegal moves by an emotional agent include pretending to be a law enforcement officer while conducting the repossession or stopping you on the street or highway. They do not have the power of a police officer and can’t endanger you by electronically disabling your vehicle while you are driving or at risk stopped on the side of a road.
- Among other definitions, some broad restrictions disallow threatening legal action they can’t take or not intended to take, and they can’t harass you!
Phil Weiser, Colorado Attorney General, states,
“Under Colorado law (§ 4-9-629, C.R.S.), any person who is retained by a secured party to recover or take possession of collateral upon default is required to be bonded for property damage to or conversion of such collateral in the amount of at least $50,000. Such bond shall be filed with and drawn in favor of the Colorado Attorney General.”
He instructs repo companies to “file a repossessor bond, send the following items to the Colorado Attorney General, Consumer Protection Unit, 1300 Broadway, 7th Floor, Denver, Colorado 80203:
1) Completed Application for Repossessor Bond (including a current partnership agreement or a Certificate of Good Standing or Certificate of Authority from the Colorado Secretary of State, as appropriate);
2) Original surety bond fully executed in the amount of at least $50,000 drawn in favor of the Colorado Attorney General (use Surety Bond Form); and
3) Non-refundable filing fee in the amount of $150, payable to the Colorado Department of Law. (from https://coag.gov/licensing/repossessors/)”
The Repo Man has a difficult task and must take appropriate and careful steps to do his job legally. There are wrongful repossessions committed in Colorado, and you can do something about it, turning the tables on them!
If a repo of your vehicle was done by any of these methods, your rights may have been violated. Fill out the form on our contact page or call the offices of Sue the Collector at 877-BAD-REPO to schedule a FREE consultation on your case.
We will help you understand your rights and determine if you have a case for wrongful repossession.
