Companies who make car loans are entitled to repossess vehicles if borrowers do not pay their loans as they’ve agreed to. However, after repossession, lenders must provide written notice to the borrowers, including a Notice of Repossession and Post-Sale Notice, that complies with the requirements of the Uniform Commercial Code (UCC). The complaint for this class action alleges that Nationwide Bank does not do this.
The Main Class for this action is
- All persons who financed or refinanced a motor vehicle for personal, family, or household use through Nationwide Bank,
- Where the bank repossessed the vehicle
- And sent a Notice of Repossession to the borrower in a state that adopted the relevant sections of the UCC,
- Where the Notice of Repossession did not clearly state the intended method of disposition, including the time and place of any public sale, or that the borrower was entitled to an accounting of indebtedness and the charge for the accounting.
A subclass has also been proposed for those who were not sent a proper post-sale notice.
Plaintiff Joshua Hughes bought a Ford Mustang in 2012 via a car loan. In 2013, he refinanced the car with a loan from Nationwide. His Promissory Note is attached to the complaint as Exhibit A, and a Consumer Security Agreement for the transaction is attached as Exhibit B.
On September 17, 2015, the bank repossessed the vehicle. Around the same time, it sent Hughes a Notice of Repossession. A copy of the notice is attached to the complaint as Exhibit C. The complaint alleges that (1) the notice does not meet the requirements of the law, and (2) the bank never sent Hughes the required Explanation of Calculation of Surplus or Deficiency post-sale notice.
(1) Notice of Repossession: According to the complaint, the notice sent to Hughes did not state the method of disposition of the car (that is, whether it would be sold at a public or private sale). If the vehicle is to be sold publicly, the notice must also state the time and place of the sale.
Also, the notice did not conspicuously state that Hughes was entitled to an accounting of his “unpaid indebtedness” and the charge for the accounting.
The law provides that consumers such as Hughes who are given notices that do not comply with the law may recover statutory damages.
(2) Post-Sale Notice: The law requires that the bank send Hughes a post-sale notice informing him that the vehicle has been sold, to let him know the price at which it was sold, and to specify the resulting surplus or deficiency regarding his loan.
According to the complaint, the bank either did not send the required post-sale notice or that the papers sent by the bank did not contain the information required by the law.
The law provides that consumers such as Hughes who are not sent proper notices may recover statutory damages.
Article Type: LawsuitTopic: Consumer
Most Recent Case Event
Nationwide Bank Vehicle Repossession UCC Violations Complaint
September 17, 2018
Companies who make car loans are entitled to repossess vehicles if borrowers do not pay their loans as they’ve agreed to. However, after repossession, lenders must provide written notice to the borrowers, including a Notice of Repossession and Post-Sale Notice, that complies with the requirements of the Uniform Commercial Code (UCC). The complaint for this class action alleges that Nationwide Bank does not do this.
nationwide_bank_repossession_lawsuit.pdfCase Event History
Nationwide Bank Vehicle Repossession UCC Violations Complaint
September 17, 2018
Companies who make car loans are entitled to repossess vehicles if borrowers do not pay their loans as they’ve agreed to. However, after repossession, lenders must provide written notice to the borrowers, including a Notice of Repossession and Post-Sale Notice, that complies with the requirements of the Uniform Commercial Code (UCC). The complaint for this class action alleges that Nationwide Bank does not do this.
nationwide_bank_repossession_lawsuit.pdf