Repossessions
Disclaimer: This is a complicated area regulated by many state and federal laws and there are plenty of ways to go wrong. By necessity, this is simply a basic outline. If your business requires you to repossess vehicles, …
Sample Notice of Surplus or Deficiency
Put this letter on your company letterhead and mail it to the last known address of the debtor. Send two copies, one copy by regular mail and one copy return receipt requested. If you get either back, put …
Notice to Sell (Post-Repossession Notice)
Put this letter on your company letterhead. Mail it to the last known address of the debtor. Send two copies, one by regular mail and one copy return receipt requested. If you get either back, put it in …
Lien Perfection and Bankruptcy
Federal bankruptcy law provides that the lender’s security interest can be avoided by the bankruptcy trustee if the customer files bankruptcy within 90 days of purchasing the vehicle and if the security interest is not perfected within 30 …
Artisan’s Lien (Lien for Repair)
Under Chapter 577 of the Iowa Code, any person who repairs a motor vehicle with the consent of the owner has a lien on that vehicle by law, so long as the vehicle remains in the possession of the …
Accepting Post-Dated Checks
It is difficult, if not impossible, to prove “theft by check” when you have taken a post-dated check as payment. In State v. McFadden, the Iowa Supreme Court said, “Clearly, if at the time the check is issued …
Notice of Right to Cure Default
The most important step in your collections practice is to determine whether you need to file a Notice of Right to Cure Default. Under Iowa law, a consumer credit account does not go into default until the consumer …
Stop Payment Checks
One troublesome aspect of accepting personal checks is the possibility that the consumer will notify the bank to stop payment on the check. Most times, the consumer has some sort of dispute over the value of the goods or …
Surcharge on Bad Checks
The law limits surcharges on bad checks to $30. Surcharges may not be assessed on checks where the payment is stopped. In order to collect a surcharge, you must clearly and conspicuously post a notice at the usual …
Illegal Collection Activities
A variety of state and federal laws govern collections activities. Among the most important are the Iowa Debt Collections Practices Act, the Federal Fair Debt Collections Practices Act, and the Federal Truth in Lending Act. The list of …