| On your own letterhead paper write or print out a | | | | forwarded to them. |
| notice which includes the name, address, and phone | | | | If payment has not been made and you are ready to |
| number of the defaulted client. Explain that you have | | | | repossess the vehicle you need to write or type a |
| attempted to contact them to no avail. Notify that they | | | | REPOSSESSION ORDER. This will state the following: |
| must contact you in order to come to a resolution to | | | | Repossess Order |
| their outstanding payments. | | | | Purchaser: |
| List the vehicle that is in question along with its VIN | | | | [Name] |
| number. | | | | [Address] |
| Give a final date that all past due payments are due | | | | [Phone number] |
| by (labeled "last date for payment") and the amount | | | | Default of contract |
| due to catch payments up (labeled "amount now due"). | | | | [vehicle year, make, model, VIN] |
| Explain that: | | | | Net Payoff Balance: [Total bottom line balance owed] |
| "If you pay the amount now due by the last date for | | | | Repo fee: [$ amount of the repo fee you charge] |
| payment you may continue with the contract as | | | | Storage fee: [$ amount of the storage fee you |
| though you were not in default. If you do not pay by | | | | charge] |
| that date, we may exercise our rights under law, | | | | Damage: [$ amount of any damage known to be |
| including involuntary repossession of the vehicle in | | | | done to the vehicle] You may also write TBD or To |
| which we hold a security interest." | | | | Be Determined here |
| Remember that as time passes until the due date you | | | | Total: Add up all of these amounts and enter the total |
| assign more payments due may accumulate. Include in | | | | here |
| the letter that by the due date these payments will | | | | The named buyer is in default of installment loan |
| also be due and list each payment by amount and | | | | contract and payment is under uniform and |
| normal scheduled due date, i.e. "date due_______ | | | | commercial state and local codes covering installment |
| Amount _______" | | | | contract. |
| After listing these payments that will accumulate by | | | | We agree to indemnify and save [your name/business |
| the final due date explain that: | | | | name] harmless from and against all claims damages, |
| "In order to fully cure your account, and in order to | | | | losses, and actions resulting from or arising out of our |
| prevent the exercise of our legal rights under the law, | | | | efforts, except as may be caused by negligence or |
| the payment or payments listed above must ALSO be | | | | unauthorized acts by our agents representing us. |
| paid in full on or before the last due date for | | | | Dealer Authorizing Repossession |
| payments" | | | | [your name/business name, address, and phone |
| Inform that even if the account is caught up you still | | | | number here] |
| have the right to take action in the event that | | | | Notarize at the bottom |
| payments fall behind again within a designated amount | | | | -Make a copy of the order for your records and give |
| of time: | | | | the order to your repossession agent (the person |
| "If you are late again within the next____weeks in | | | | performing the actual vehicle acquisition). |
| making your payments, we may exercise our rights, | | | | Note that - |
| including repossession, without sending you another | | | | * If you follow these steps you will have done a legal |
| notice like this one." | | | | repossession. |
| Explain your rights to collect further monies owed | | | | * Many people do not send a notification letter |
| under the lien contract: | | | | because many times a client will attempt to hide the |
| "The rights we may exercise under the law include | | | | vehicle once they have received a letter like this, |
| repossession of the motor vehicle securing this debt. If | | | | especially if they have no intentions of paying. |
| the motor vehicle is repossessed, either voluntarily or | | | | * Most people are unaware of their rights when it |
| involuntarily, it may be sold and you may owe the | | | | comes to a vehicle repossession so they usually don't |
| difference between the net proceeds from the sale | | | | report someone who has not followed proper |
| and the remaining balance due under the contract." | | | | procedure, however, If you do not send the certified |
| Ask the client to contact you right away if they have | | | | letter notifying them of their default and giving them |
| any questions. | | | | opportunity to make payment they have grounds to |
| Close the letter with: | | | | report you to the state's DMV Dealer Services and |
| "If we do not hear from you within___days, we will | | | | the state's Attorney General which can result in you |
| have no choice but to put out a REPOSSESSION | | | | being fined as well as taken to court for violating |
| ORDER on the vehicle." | | | | repossession laws. |
| Sign it and have it notarized. | | | | * Keep in mind that some states do not allow a |
| Mail the letter certified with delivery confirmation and | | | | repossession to take place on private property if the |
| return address requested. This way you have 2 ways | | | | repossession agent is asked to leave (some states |
| of confirming and proving that they did receive the | | | | require him/her to leave and for you to obtain a court |
| notice in case legal questions arise after the | | | | order). |
| repossession. | | | | * Some states have no restrictions on public property. |
| You also obtain any forwarding address if the client | | | | * Some states forbid repossession to take place at a |
| has moved so that you can more easily locate the | | | | client's place of employment. |
| vehicle. The return address requested will send the | | | | * Be sure to check specific repossession laws |
| letter back to you if they have moved instead of being | | | | pertaining to your state. |