Page 77 - CARS Standard Program

Additional language in contracts and security agreements protects the secured party when there are items of personal property contained within the collateral at the time it is repossessed. This language general states; “If, in repossessing said property, the holder inadvertently takes possession of any other goods therein, consent is hereby given to such taking of possession, and holder may hold such goods temporarily for owner(s) without any responsibility or liability therefore, providing holder returns the same upon demand.”
The taking, inventorying and protection of personal property contained in the repossessed collateral are of paramount importance and are covered in detail in the Recovery Process, Section 6 (Personal Property).
It is highly recommended that you obtain a Security Agreement from one of your clients and thoroughly familiarize yourself with its contents. There will be many occasions when dealing with a debtor or soliciting business when knowledge of contracts will be of significant value.
Consumers Right to Cure Notice
There are a number of states that require a Right to Cure Notice be sent to debtors who are in default on consumer loans before repossession of the collateral can take place. Colorado, Iowa, Kansas and South Carolina require a 20-day notice. Maine requires a 14-day notice. Massachusetts, Missouri and Nebraska require a 21-day notice. West Virginia and Maryland both require a 10-day notice and Wisconsin requires a 15 day notice.
Following are generally accepted procedures in states that require a Right to Cure Notice:
1. A creditor may give the debtor Notice (Right to Cure Notice) when the following conditions have been met:
a. After the debtor has been in default for 10 days for failure to make a required payment
b. Has not voluntarily surrendered possession of the collateral in default
2. Right to Cure Notice must be in writing and must conspicuously state:
a. The name, address and telephone number of the creditor to which payment is to be made
b. A brief identification of the credit transaction
c. The debtor’s right to cure the default
d. The amount of payment and the date by which payment must be made to
cure the default
3. Mail the notice to the last known address of the debtor by obtaining a Proof of Mailing from the post office. When completed and stamped by the post office at the time of mailing, the certificate provides a record for the creditor’s file. Right to Cure Notices sent by certified mail return receipt requested may not hold up in court