February 4, 2005 MEDIA RELEASE

Forsyth woman awarded $13,765 in wrongful repossession case

(Winston-Salem, NC) – When a local car dealer came to repossess Cassandra Jones’ car, she knew that she was not behind on her payments, and she sought legal counsel. On Tuesday, a district court judge agreed with Jones and awarded her $13,765 in damages.

The court decision by District Court Judge Lisa Menefee included penalties for wrongful repossession, excessive late fees, failure to send notice of sale of the car, unfair debt collection, and attorney fees. The car dealer, Richard’s Car Imports, was also penalized for charging too much in collection fees on a previous repossession of Jones’ car in June 2002.

“The dealer had taken my car even though I was not behind on my payments, just three months after he repossessed it the first time,” said Jones. “I knew I had to do something about it. I am so grateful for the help with my case and, of course, so happy about the outcome.”

Jones had bought a Nissan Sentra from Richard’s Car Imports in July 2001. When she switched jobs, she temporarily fell behind in her payments. Her car was repossessed first in June 2002; she had to pay $920 to get the car back. The judge ruled that that was an excessive amount. Her car was repossessed again in September 2002, but she was actually current with her payments at the time.

“Although this state has laws to protect consumers against wrongful repossession and unfair collection practices, some businesses get a bit too aggressive,” noted Liza Baron, managing attorney for Legal Aid of North Carolina’s Winston-Salem office. “Unfortunately, some people do not know their rights as a consumer, so it is important for them to consult with an attorney to ensure that they have been treated fairly.”

Legal Aid of North Carolina (LANC) and the Legal Aid Society of Northwest North Carolina, both based in Winston-Salem, represented Jones first in an arbitration hearing and then in district court. “We were very pleased with the result,” said Michele Geathers, staff attorney with LANC.

The Legal Aid Society of Northwest North Carolina was awarded $5,000 in attorney fees for its work on the case.

Baron said that consumers can protect themselves in several ways against unscrupulous car dealers and lenders:

  • Get, and hold onto, receipts for every payment they make

  • Keep the payment receipts in a safe place other than the car (so if the car is taken, they will still have the payment receipts);

  • Realize that they do not have to turn over the keys to the repossessor: they can object when creditors come to take the car for nonpayment (the creditor must then go to the courts to take possession of the car or, if they persist despite the objection, they have committed a “breach of the peace” that the consumer can sue for);

  • Do not sign any contracts where the blanks are not fully filled in, with terms that have been agreed upon by both parties;

  • Consult an attorney (to ensure that their rights have not been violated).

Legal Aid of North Carolina (LANC) is a statewide, nonprofit law firm that provides free legal services in civil matters to eligible, low-income people in all 100 counties in North Carolina through 24, geographically located offices in North Carolina. LANC’s clients typically have an annual income of 125% or less of the federally established poverty levels.

CONTACTS: Liza Baron (Managing Attorney, LANC-Winston-Salem Office, Winston-Salem, NC);
336-725-9162 (office)

Hazel Mack-Hilliard (Senior Managing Attorney, LANC-Winston-Salem Office, Winston- Salem, NC); 336-725-9162

Dock Kornegay (Director, Public Relations & Development, Raleigh, NC); 919-856-2132;

 

 

 

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Legal Aid of North Carolina is a statewide, nonprofit law firm that provides free legal services in civil matters to low-income people in order to ensure equal access to justice and to remove legal barriers to economic opportunity.

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