What Notice Am I Entitled to in a Repossession ogf My Vehicle?
Full Question:
Answer:
In Georgia, a consumer goods transaction requires a notice of disposition to be sent prior to selling a foreclosed vehicle. If notice proceedings aren't followed, it may be possible to recover damages for out-of-pocket losses and statutory damages under 11-9-625.
Please see the following GA statutes:
11-9-625. (a) Judicial orders concerning noncompliance. If it is. . . .
(a) Judicial orders concerning noncompliance. If it is established that
a secured party is not proceeding in accordance with this article, a
court may order or restrain collection, enforcement, or disposition of
collateral on appropriate terms and conditions.
(b) Damages for noncompliance. Subject to subsections (c), (d), and (f)
of this Code section, a person is liable for damages in the amount of any
loss caused by a failure to comply with this article. Loss caused by a
failure to comply may include loss resulting from the debtor's inability
to obtain, or increased costs of, alternative financing.
(c) Persons entitled to recover damages; statutory damages in consumer
goods transaction. Except as otherwise provided in Code Section 11-9-628:
(1) A person that, at the time of the failure, was a debtor, was an
obligor, or held a security interest in or other lien on the collateral
may recover damages under subsection (b) of this Code section for its
loss; and
(2) If the collateral is consumer goods, a person that was a debtor
or a secondary obligor at the time a secured party failed to comply
with this part may recover for that failure in any event an amount not
less than the credit service charge plus 10 percent of the principal
amount of the obligation or the time price differential plus 10 percent
of the cash price.
(d) Recovery when deficiency eliminated or reduced. A debtor whose
deficiency is eliminated under Code Section 11-9-626 may recover damages
for the loss of any surplus. However, a debtor or secondary obligor whose
deficiency is eliminated or reduced under Code Section 11-9-626 may not
otherwise recover under subsection (b) of this Code section for
noncompliance with the provisions of this part relating to collection,
enforcement, disposition, or acceptance.
(e) Statutory damages; noncompliance with specified provisions. In
addition to any damages recoverable under subsection (b) of this Code
section, the debtor, consumer obligor, or person named as a debtor in a
filed record, as applicable, may recover $250.00 in each case from a
person that:
(1) Fails to comply with Code Section 11-9-208;
(2) Fails to comply with Code Section 11-9-209;
(3) Files a record that the person is not entitled to file under
subsection (a) of Code Section 11-9-509;
(4) Fails to cause the secured party of record to file or send a
termination statement as required by subsection (a) or (c) of Code
Section 11-9-513;
(5) Fails to comply with paragraph (1) of subsection (b) of Code
Section 11-9-616 and whose failure is part of a pattern, or consistent
with a practice, of noncompliance; or
(6) Fails to comply with paragraph (2) of subsection (b) of Code
Section 11-9-616.
(f) Statutory damages; noncompliance with Code Section 11-9-210. A
debtor or consumer obligor may recover damages under subsection (b) of
this Code section and, in addition, $250.00 in each case from a person
that, without reasonable cause, fails to comply with a request under Code
Section 11-9-210. A recipient of a request under Code Section 11-9-210
which never claimed an interest in the collateral or obligations that are
the subject of a request under that Code section has a reasonable excuse
for failure to comply with the request within the meaning of this
subsection.
(g) Limitation of security interest; noncompliance with Code Section
11-9-210. If a secured party fails to comply with a request regarding a
list of collateral or a statement of account under Code Section 11-9-210,
the secured party may claim a security interest only as shown in the list
or statement included in the request as against a person that is
reasonably misled by the failure.
11-9-611. (a) "Notification date." As used in this Code section, the. . . .
(a) "Notification date." As used in this Code section, the term
"notification date" means the earlier of the date on which:
(1) A secured party sends to the debtor and any secondary obligor an
authenticated notification of disposition; or
(2) The debtor and any secondary obligor waive the right to
notification.
(b) Notification of disposition required. Except as otherwise provided
in subsection (d) of this Code section, a secured party that disposes of
collateral under Code Section 11-9-610 shall send to the persons
specified in subsection (c) of this Code section a reasonable
authenticated notification of disposition.
(c) Persons to be notified. To comply with subsection (b) of this Code
section, the secured party shall send an authenticated notification of
disposition to:
(1) The debtor;
(2) Any secondary obligor; and
(3) If the collateral is other than consumer goods:
(A) Any other person from which the secured party has received,
before the notification date, an authenticated notification of a claim
of an interest in the collateral;
(B) Any other secured party or lienholder that, ten days before the
notification date, held a security interest in or other lien on the
collateral perfected by the filing of a financing statement that:
(i) Identified the collateral;
(ii) Was indexed under the debtor's name as of that date; and
(iii) Was filed in the office in which to file a financing statement
against the debtor covering the collateral as of that date; and
(C) Any other secured party that, ten days before the notification
date, held a security interest in the collateral perfected by compliance
with a statute, regulation, or treaty described in subsection (a) of Code
Section 11-9-311.
(d) Subsection (b) of this Code section inapplicable; perishable
collateral; recognized market. Subsection (b) of this Code section does
not apply if the collateral is perishable or threatens to decline
speedily in value or is of a type customarily sold on a recognized
market.
(e) Compliance with subparagraph (c)(3)(B) of this Code section. A
secured party complies with the requirement for notification prescribed
by subparagraph (c)(3)(B) of this Code section if:
(1) Not later than 20 days or earlier than 30 days before the
notification date, the secured party requests, in a commercially
reasonable manner, information concerning financing statements indexed
under the debtor's name in the office indicated in subparagraph (c)(3)(B)
of this Code section; and
(2) Before the notification date, the secured party:
(A) Did not receive a response to the request for information; or
(B) Received a response to the request for information and sent an
authenticated notification of disposition to each secured party or
other lienholder named in that response whose financing statement
covered the collateral.
11-9-614. In a consumer goods transaction, the following rules apply:
In a consumer goods transaction, the following rules apply:
(1) A notification of disposition must provide the following
information:
(A) The information specified in paragraph (1) of Code Section 11-9-613;
(B) A description of any liability for a deficiency of the person to
which the notification is sent;
(C) A telephone number from which the amount that must be paid to the
secured party to redeem the collateral under Code Section 11-9-623 is
available; and
(D) A telephone number or mailing address from which additional
information concerning the disposition and the obligation secured is
available;
(2) A particular phrasing of the notification is not required;
(3) The following form of notification, when completed, provides
sufficient information:
(Name and address of secured party)
(Date)_________
NOTICE OF OUR PLAN TO SELL PROPERTY
(Name and address of any obligor who is also a debtor)
Subject: (Identification of transaction)
We have your (describe collateral), because you broke promises in our
agreement.
(For a public disposition:)
We will sell (describe collateral) at public sale. A sale
could include a lease or license. The sale will be held as follows:
Date: _____________
Time: _____________
Place: _____________
You may attend the sale and bring bidders if you want.
(For a private disposition:)
We will sell (describe collateral) at private sale sometime
after (date). A sale could include a lease or license.
The money that we get from the sale (after paying our costs) will
reduce the amount you owe. If we get less money than you owe, you
(will or will not, as applicable) still owe us the
difference. If we get more money than you owe, you will get the extra
money, unless we must pay it to someone else.
You can get the property back at any time before we sell it by paying
us the full amount you owe (not just the past due payments), including
our expenses. To learn the exact amount you must pay, call us at
(telephone number).
If you want us to explain to you in writing how we have figured the
amount that you owe us, you may call us at (telephone number)
or write us at (secured party's address) and request a
written explanation. (We will charge you $________________ for the
explanation if we sent you another written explanation of the amount
you owe us within the last six months.)
If you need more information about the sale call us at (telephone
number) or write us at (secured party's address).
We are sending this notice to the following other people who have an
interest in (describe collateral) or who owe money under your
agreement:
(Names of all other debtors and obligors, if any);
(4) A notification in the form of paragraph (3) of this Code section is
sufficient, even if additional information appears at the end of the
form;
(5) A notification in the form of paragraph (3) of this Code section is
sufficient, even if it includes errors in information not required by
paragraph (1) of this Code section, unless the error is misleading with
respect to rights arising under this article; and
(6) If a notification under this Code section is not in the form of
paragraph (3) of this Code section, law other than this article determines
the effect of including information not required by paragraph (1) of this
Code section.
11-9-623. (a) Persons that may redeem. A debtor, any secondary obligor,
. . . .
(a) Persons that may redeem. A debtor, any secondary obligor, or any
other secured party or lienholder may redeem collateral.
(b) Requirements for redemption. To redeem collateral, a person shall
tender:
(1) Fulfillment of all obligations secured by the collateral; and
(2) The reasonable expenses and attorney's fees described in paragraph
(1) of subsection (a) of Code Section 11-9-615.
(c) When redemption may occur. A redemption may occur at any time
before a secured party:
(1) Has collected collateral under Code Section 11-9-607;
(2) Has disposed of collateral or entered into a contract for its
disposition under Code Section 11-9-610; or
(3) Has accepted collateral in full or partial satisfaction of the
obligation it secures under Code Section 11-9-622.