Burr Ridge, Illinois Attorney for Unlawful Car Repossession & Auto Finance Fraud

There are two situations relating to car purchases that consumers encounter with some frequency: unlawful repossession and dealer fraud in the financing part of the transaction. At Modestas Law, we help consumers who are victimized in both of these cases as part of our consumer rights practice.

Unlawful Car Repossession in Illinois

Illinois laws impose specific requirements for creditor agents who repossess a car when a buyer defaults on car payments. If the requirements are not met, the repossession may be illegal. In many cases of unlawful repossession, the consumer not only gets the car back but can also recover money damages.

There are a number of reasons that a repossession can be illegal:

  • You are not actually in default on the payments.
  • The car was not collateral for the loan, so the creditor does not have a valid security interest in your car.
  • The repossession agent — often referred to as "repo man" — breached the peace in taking the car, by being violent, making threats, or destroying your property.
  • You did not receive proper notice of the repossession and your rights.
  • The method of repossession provides the basis for a tort claim for conversion, which is a legal action for interfering with another person's property rights.
  • The repossession violates the Illinois Commercial Code or Illinois Consumer Fraud Act.

If your car has been repossessed and you suspect the repossession may be illegal, Modestas Law has the experience to help you.

Illinois Auto Finance Fraud

Increasingly, consumers are reporting that car dealers engage in fraud relating to the financing arrangements for an auto purchase. There are a number of different ways auto finance fraud can occur. Unsuspecting car buyers who are victimized by this type of fraud can get relief under federal and state laws.

There are quite a few different types of car finance fraud. The most common ones are:

  • Packed Payments Scam: The dealer increases the payments by adding — or "packing" — products and services that you did not ask for, such as extended warranties and gap insurance.
  • Spot Delivery Scam: The dealer fills out financing documents and lets you take the car home. Several days later, you get a call telling you that the financing fell through. You return to the dealership and end up with a new loan at a higher interest rate and fees, greater down payment, and/or higher payments. This scam is often referred to as "yo-yo financing."
  • Interest Rate Scams: Dealers add a finance reserve or dealer reserve on top of the finance rate quoted by the lender, or the dealer chooses a lender with a higher rate because the lender allows the greatest dealer mark-up on the rate.
  • Credit Score Scam: The dealer falsely misrepresents the buyer's credit score and tells you that you don't qualify for competitive interest rates (when in fact you do) and presents you with a higher interest rate loan.

There are other scams that dealers can run during car financing negotiations as well. The best way to guard against all these scams is to shop around for financing — rather than relying on the dealer for financing — and know your credit score in advance. However, if you fell victim to one of these scams, there are laws to protect you. An experienced auto finance fraud attorney will be able to evaluate your situation and advise you of your options.

Schedule a Consultation with an Illinois Attorney for Illegal Car Repossession and Auto Finance Fraud

At Modestas Law, we have the experience and skill to help with cases of illegal car repossession and auto finance fraud. We serve Illinois clients in Chicago, Cook County, DuPage County, and Will County. Our office is located in Burr Ridge. Contact us to schedule an initial consultation.

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