Auto repossession lawsuit questions collectors' rights

A debt collection agency specializing in automotive financing is being sued for allegedly violating the Fair Debt Collection Act.  Luther Calvert of Madison, Illinois, filed a lawsuit in mid-August after Santander Consumer USA repossessed his vehicle following a late loan payment, the Madison Record reports. Calvert had purchased a 2004 Chrysler Sebring for more than $18,000 in 2004, and by the time his car was claimed, he had less than $2,000 to pay back. Calvert also noted that Santander representatives caused a scene in their attempts to contact him, pounding on doors and "publicizing (his) financial difficulties" according to the complaint. Santander claims that Calvert had made numerous late payments. However, by allowing the tardiness to slide, Calvert's lawyer believes Santander waived its right to the strict adherence of the loan contract. Yet, according to Fair Debt Collection, a lender retains rights to a vehicle until a final payment is made.