| Repo and Collection Terms |
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- Breach of the peace: The definition of the breach of the peace is left to the courts and the definition has evolved over time and is not the same in all jurisdictions. Importantly, some courts have held that if the breach of the peace is of such an extreme nature that involves wanton and reckless disregard of the property rights of another, the creditor maybe liable for punitive damages . More
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- Impound: Where the collateral is secured such as; Police impound, private impound for
parking, storage
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- Lien Sale: Collateral is sold for as much as can be gotten via auction or other sale.
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- Mechanics lien: consumer takes a vehicle into a auto shop for repairs, but doesn't return to pay the fees owed, the mechanic, in some states, may have a right to file a lien against the asset, and sell for what's owed (generally all they are going to do is secure a lien if the property is worth more than owed, since they would have to give the consumer the balance from the sale).
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- Backwards trace - With the tag number he obtains a vehicle registration from state motor vehicle and does a title trace. What this tells him is, if the vehicle has a lien on it. If it does, it will give the name of the lending company. The lending company is then contacted to see if the vehicle is missing and needs to be repossessed.
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This site is for general information ONLY and should not be used as a legal resource!! |
