Can a dealership reposess a car if a check bounced from 16 months back?

i purchased a car 16 months ago and wrote 2 checks for 7500. 1 of the checks bounced because of a medical emergency which i took full responsibility for. I have paid the payments through the finance company on time since the purchase, and the $7500 went to collections. now the %26quot;GM%26quot; of the dealership is harassing me saying he will take the car back if i dont pay it in full within 30 days, even though the collection agency setup a payment plan to repay the debt which i have been paying as well. so this falls back to my original question, what can the GM of the dealership do? can he take my car back from me? can they take me to court and sue even though i have a payment plan setup? what else is can possibly happen? what are my options? thanks!

Can a dealership reposess a car if a check bounced from 16 months back?

Auto finance is what I do for a living and if I am reading your question correctly this was a cash deal with post dated checks.

If this is correct, then you have defaulted on your contract since the check bounced, but the dealer messed up by turning your account over to a collection company, once they did this they gave up the legal right to take your car back.

Deal only with the collection company and not the dealership.

Can a dealership reposess a car if a check bounced from 16 months back?

no because they already contacted a collection agency and its then out of there hands. The collection agency is the middle man, you should not have any contact with dealership. It sounds like they are being shady and trying to get more money. Handle everything through the collection agency and let them know that the dealership is harassing you. As long as you do your part in paying the debt and work with the collection agency, you wont half to worry. Plus your lean is through a bank, not the dealership meaning the title of the vehicle belongs to that bank mening its there car and not the dealerships so they can not take it from you. So no you dont half to worry. If it gets worse call a lawyer and set the dealership straight.

Can a dealership reposess a car if a check bounced from 16 months back?

Contact a lawyer or get your CPA to figure this out.

From what you have described, it sounds like the dealership is trying to double-dip, i.e. collect twice on a loan.

Usually, when a loan is turned over to a 3rd party collection agency, the original lender settles for a fraction of the loan%26#039;s face value, and lets the agency try to recover its own expenses and make a profit on the difference.

It also depends on what is written on your vehicle title statement - if the dealership is listed as the lienholder, then technically they still own it.

One other problem is that the bounced check can be interpreted as fraud (passing a bad check), so you need to get things straightened out.

You didn%26#039;t say how much each of the 2 checks were written for - the total was $7500, but only one check bounced. So I don%26#039;t understand why the entire $7500 was sent to collections. It doesn%26#039;t add up.

Can a dealership reposess a car if a check bounced from 16 months back?

If you are in default they can repo your car. Default equals not paid on time period. If you are behind on the retail installment contract you are in default. Now in court (I am not a lawyer) it is a tricky situation, because if the dealership has a history of accepting late payments blah blah blah then there is an established policy.

But yes they can repo your car. Will they? I dont know.

Can a dealership reposess a car if a check bounced from 16 months back?

Might be so. Somewhere buried in your contract, there could be a clause that says if you default on a payment even once, the dealer has rights to repossess or call in the balance owed that can be triggered any time, even months after the temporary default event happened. The fact that you are on a payment plan with a collection agency is not the same as being current with the dealer.