Expert: Regan Shinski - 9/18/2009

Question
Hi
I just had a car repossessed. I am buying a car from a buy here pay here lot. Have been a little late on payments as I have been out of work but never more than 2 weeks total. I pay every two weeks. My last payment was due on the 11th of this month; this is the only payment I owed. With only one week behind they repo'd my car... 7 days late. I live in Ky; is this legal???

Answer
Hello Beth:

I have spent the past hour trying to get a definitive answer for you.  I don't live in Kentucky so I had to do quite a bit of reading.  Let me start by saying I would have automatically said "yes" it is legal.  It is legal at one day in some cases and the provisions of your contract are important here.  So you really need to read through that purchase contract with a fine tooth comb.  The key is what constitutes a "default."

Again, I would automatically say yes it is legal, EXCEPT I am seeing a statute in Kentucky law that gives me pause.  This is copied directly from that statute 186A.190(4):


Notwithstanding subsections (1), (2), and (3) of this section, a county clerk shall, following inspection of the vehicle by the sheriff, to determine that the vehicle has not been stolen, issue a new title to a vehicle, clear of all prior liens, to a person after he provides to the county clerk an affidavit devised by the Transportation Cabinet and completed by the person. In the affidavit, the person shall attest that:
(a) He possesses the vehicle;
(b) A debt on the vehicle was owed him for more than thirty (30) days before he provided the notices required by paragraphs (c) and (d) of this subsection;
(c) More than fourteen (14) days before presenting the affidavit to the county clerk, the person attempted to notify the owner of the vehicle and all known lienholders, including those noted on the title, by certified mail, return receipt requested, of his name, address, and telephone number as well as his intention to obtain a new title, clear of all prior liens, unless the owner or a lienholder objected in writing;
(d) More than fourteen (14) days before presenting the affidavit to the county clerk, the person had published a legal notice stating his intention to obtain title to the vehicle. The legal notice appeared at least twice in a seven (7) day period in a newspaper published, and with a statewide circulation, in Kentucky. The legal notice stated:
1. The person's name, address, and telephone number;
2. The owner's name;
3. The names of all known lienholders, including those noted on the title;
4. The vehicle's make, model, and year; and
5. The person's intention to obtain title to the vehicle unless the owner or a lienholder objects in writing within fourteen (14) days after the last publication of the legal notice;


This clearly appears to be a statute for obtaining a new title AFTER the repossession.  However, point "b" says they have to sign an affidavit saying the debt was owed for more than 30 days, which is not the case yet.  So at the very least, you have some redemption options, since it has not been 30 days.

I'm not trying to confuse you, I just could not get 100% clarification.  Again, in general I think it is legal for them to take the vehicle upon being delinquent ANY amount of time.  I just am not sure about this specific Kentucky statute.  I would contact the Kentucky attorney general's office (502-696-5300) or, better yet, the Kentucky consumer protection hotline at 888-432-9257.  I called this number trying to get clarification for you.  A receptionist answered, transferred me to an attorney, but I received his voice mail.  

At the very least, if you let the vehicle go, you have to be sure the post repossession and credit reporting complies with federal law.  I definitely can help in that area as credit repair is my primary area of expertise.

Good luck!
Regan
813-454-1459