Car repossession

February 16th, 2011 by Questions

I had a car, got behind on payments and dodged the finance company until they got the repo man to find me. He came to get the car, I gave him the keys, didn\’t make a fuss or get the police involved. This happened a year ago, now there is a collection agency asking for money for the finance company. I thought in Alberta there was a seize or sue law. They can\’t do both or can they? He collection agency emailed me saying I had 3 days to contact them regarding this. I emailed right back and told them I understood there is a seize or sue law and asked what money amount they want to collect and for what purpose. They replied and told me the amount but not why the amount exists. Am I covered under the seize or sue law in Alberta in this case, what should I tell the collection agency? Do I need to prepare for litigation or do I have a leg to stand on?

Posted from: Alberta


One Response to “Car repossession”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

You are partially correct, in Alberta we do have the sieze or sue legislation, but this legislation only applies to a Conditional Sales Contract. There are multiple ways to finance a vehicle and a Conditional Sales Contract is only one of them, in all other types of finance contracts the creditors can do both seize and sue. So what you first need to do is determine if you did finance under a Conditional Sales Contract and if so you would be best to contact legal council. If it is not under this type of contract, and the vast majority of financing that is done isn’t, then you a responsible to see this debt paid in full.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)