Repossession Of Cars In Illinois Resume After COVID-19 Pause Car repossessions in the state of Illinois have restarted as of August 22, 2020, following a pause for th… And both car owners and repossession agents face massive potential ramifications with this decision.
Impact on Car Owners
Loan payments have also been problematic, with many residents struggling to make ends meet. The repossession ban being lifted allows lenders to repossess vehicles from buyers that are behind in payments. This has created too large a number of stealthless car owners that would otherwise be unable to afford getting their repossessed cars back. 12
Concerns for Recovery Agents
Recovery agents who are going back out to work say they fear for their safety.car repossession Illinois (ad) The added financial pressure is making agents concerned about angry car owners, who may confront them when they come for the vehicle back. A former agent said that “I think it’s always been dangerous, but the danger goes up probably a few notches in this climate.”1 Acknowledging these apprehensions, the executive director of the Professional Towing and Recovery Operators of Illinois said that it is largely financial institutions keen on recouping money who are behind a push to restart repossessions.12
Rights under the Legal Framework of a Consumer
In Illinois, it can sneak up on you – lenders in the state are not required by law to notify borrowers before a vehicle is repossessed. They have to make a written notification that they will sell the vehicle, but within three days of repossession. After that happens, paying your unpaid payments and fees to get your car back within 21 days if you pay at least 30%36 of the loan. The absence of prior notice on this huge fall amount can be a surprise to most borrowers which is why it is highly advisable that these various rights and obligations within the loan agreements should all be known properly34.
In Illinois, more questions about consumer protection in continuing economic hardships — although vehicle repossessions have been allowed to continue against some residents.
