OPM auto sales in Howe, IN sold me a vehicle and never produced a title within 21 days as his paperwork stated he had to by law! I refused to continue making payments until he produced a title – vehicle was repossessed last Wed. morning. I was told repo fees were $700. He then called me on Friday and said the repo fees were now $1700 and I needed to send payment immediately. He called again on Saturday, asked if I had sent the money, which I had not yet. He then stated that he was selling the vehicle that day. Now I am out $2500. and my trade in which he gave me $250 for. In Indiana am I only allowed 3 business days to produce his increasing repo fees, and monies owed when OPM never produced a title as his own contract states? Isn’t the vehicle supposed to go to auction and not be sold off of his lot again? Who can I contact to get this resolved or seek information to the proper laws regarding this situation? The local BMV does not get involved and actually tend to side with dealer.
Originally posted 2009-08-03 20:34:13.
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Call your state attorney generals office. You will find the number in the phone book. If you can prove that you didn’t pay because he didn’t produce the tittle…believe me, one call from there office will set this guy straight.
Its not always as easy as that. Usually there are three entities involved in a car purchase. (1) You, 2) a lender who lends you money in exchange for a promise by you to pay the lender back, and 3) a car dealership who promises to give you the car (+ title, etc.) in exchange for money) First off, who reposessed the car? Was it the dealership, or the lender who loaned you the money? Did you not pay a separate loan company when you were having a fight with the dealer? (IE Im upset with Ford, so I don’t pay Ford Motor Credit Company. Its a classic mistake because you think they are the same company, but they are really separate companies altogether) You should talk to an attorney in your jurisdiction immediately. Many state bars offer reduced rate consulations. These issues rarely are so cut and dry, but you should talk to an attorney in your area.
When you signed the loan papers, you placed the vehicle up as collateral. I am guessing that the loan did not have any language in it which allowed you to stop paying for it if you didn’t get the title. That is a seperate issue altogether. You didn’t mention if it was Buy-Here-Pay-Here, or a traditional car loan. The loan company actually owns the title until the vehicle is paid off, and what you get is a Referendum title so you can register the vehicle. Unfortunately, whoever is loaning the money can decide to reposses the car if you miss so much as one payment, regardless of what you feel might be a valid reason. In any type of loan, you must follow what is written and not interpret the meaning by yourself, adding your own clauses to it. Chances are, the courts, if involved, will say “Did you sign the loan agreement with these terms?” and you say “Yes, but then after I didn’t like -insert whatever here” they aren’t going to side with you. If you signed a legal loan paper you must pay according to the terms or you forfeit your collateral as applicable.
It sounds like OPM Auto Sales is a buy-here/pay-here business. As such, when you finance a vehicle through them, they hold the title until you have paid everything you agreed to pay when you bought the car. Did you get a registration from the DMV? If so, then they processed everything as required by law, the car was registered to you but they held the title as lienholder. The reason they hold the title is so when people don’t make their payments, they can legally repossess THEIR car (it isn’t yours until you paid for it). When YOU as a customer violate the contract by non-payment, you lose everything you have invested in the deal to date. That includes down payment, trade in, and payments made. The dealer has the right, according to the contract you signed, to repossess the car. They also have the right to establish how much you need to pay and when you need to pay it to get the car back (as long as that figure does not exceed the total cost of the contract plus repo and recovery fees). The lienholder has no obligation to continue a payment plan with a borrower who is in default. Also, that lienholder has the right to dispose of that car in any manner in which they see fit. They actually even have the right to sell the car at auction for much less than you still owe, and then sue you for the difference. It sounds like this dealer has just written you off as a bad customer who doesn’t make payments as agreed, and has sold the car to someone who they hope will be a better payer. If you are lucky, they will not seek legal recourse for any money they may have lost – but they can if they want to. Refusing to make your payments until they give you a title that is legally theirs to hold until the car is paid in full was like bringing a knife to a gun fight. You have no recourse except to maybe go apologize for your actions, offer to pay all back payments plus repo fees, and ask nicely if you can have the car back. Other than that, this was an expensive lesson. Sorry to be the bearer of bad news.
You should have just taken your paperwork to the BMV and applied for a new title with the state. You can’t take matters into your own hands and just stop paying for the car. He can liquidate that car any way he wants, whether it be at an auction or on his lot. I work in the auto finance industry in Indianapolis, and the only reason we send our cars to sell at the auction is that we just want to liquidate them, we don’t want them sitting around somewhere.
So basically he didn’t hold up his end of the sales contract and neither did you, so you’re both in the wrong here, legally speaking.