California Auto Fraud Attorney | Wrongful Repossession Case Win
Consumer Action Law Group recovered $4,000 for client E. Mendoza after her vehicle was wrongfully repossessed even though she had been making her payments on time.
What happened to Mendoza?
Our client purchased a vehicle and made her payments diligently every month, exactly as her financing agreement required. Her finance company improperly posted two of her payments, which caused her account to incorrectly appear delinquent. Based on this error, her vehicle was repossessed, even though she had done nothing to justify it.
How did Consumer Action Law Group resolve this case?
After reviewing our client’s payment history and account records, our team identified that the repossession stemmed directly from the finance company’s own posting error rather than any fault on our client’s part. Consumer Action Law Group pursued the matter on our client’s behalf, and the case was resolved through a negotiated settlement. In addition to the monetary recovery, our client secured deletion of the account from her credit report and a full waiver of the remaining loan balance.
Frequently Asked Questions
Can my car be repossessed because of a payment processing error?
It shouldn’t be, but it happens. If a payment is misapplied or improperly posted to your account, your account can incorrectly show as delinquent even though you paid on time. If your vehicle was repossessed under these circumstances, you may have a claim against the finance company responsible for the error.
What can I recover if my car was wrongfully repossessed due to a lender’s mistake?
Depending on the facts of your case, you may be entitled to a monetary recovery, removal of the account from your credit report, and in some cases a waiver of any remaining loan balance. Consumer Action Law Group recovered $4,000 for our client under these exact circumstances, along with a deleted tradeline and a waived balance.
How do I know if a repossession was actually wrongful?
The key question is whether you were actually in default under the terms of your contract at the time your vehicle was taken. If you were current on your payments, or if a payment was misapplied or lost by your lender, the repossession may not have been legally justified.
My car had the same issue, repossession over a payment error. Does that mean I can recover the same amount?
Not necessarily. Every case depends on its own specific facts, the outcome described here reflects the particular circumstances of that client’s situation, and similar-sounding cases don’t always lead to the same result. What matters is whether the events happened as you remember them, whether you have documentation to support your claim (such as your payment records, account statements, or lender communications), and whether the circumstances of your vehicle purchase qualify under the laws Consumer Action Law Group pursues. The only way to know if you have a case is to speak with our team directly – consultations are free.
What should I do if my car was repossessed and I believe I was current on payments?
Start by gathering your payment records, bank statements, and any account correspondence you have. Then have your situation reviewed by an attorney as soon as possible since some of these disputes have limited timeframes for pursuing a claim.
Did a car dealer defraud you? We can help.
Consumer Action Law Group has helped numerous California consumers recover money after being wronged by dealers and lenders, including cases involving wrongful repossession caused by lender errors. If your vehicle was repossessed despite being current on your payments, you may have a case. Contact us today, consultations are free.
