Getting back a repossessed car or personal property left in the car Lawyer Manual

The debtor A person who owes money to someone else should get back any personal property left in the car. Unless the creditor Someone who is owed money also had a security interest in the property inside the car, which is not likely, a repossession agent is required to:

1. Inventory the personal property, and
2. Give written notice of intent to dispose of the personal property after 45 days and the location where the property can be retrieved. 225 ILCS 422/110

The lender or its agent generally may not charge a fee to retrieve personal property, but if they demand a small fee (e.g., $25), it may be advisable to pay it to expeditiously get the property back. If the repossession agent refuses to return the property on demand of the debtor or the debtor's agent, which constitutes theft The unlawful taking of property, money, or services from another person, business, or organization or conversion, the debtor has a claim against the lender for the value of the unreturned property. Fleming-Dudley v. Legal Investigations, Inc., 2007 WL 952026 (N.D. Ill. 2007). The request should be in writing and specify the items of property to be returned. If a repo is likely but hasn't happened yet, advise the client not to keep personal belongings in the car.

In Illinois, there are two ways for consumers to redeem their cars:

1. Reinstatement, the 30% Rule, 625 ILCS 5/3-114(f-7): Applies only to vehicles, and only where, at the time of repossession, the debtor has paid at least 30% of the deferred payment price or total of payments due (including the down payment and any trade-in in the 30%). The "deferred payment price" is similar to the TILA "total sale price" 815 ILCS 375/2.10. The total of payments due should be the same as the TILA "total of payments." If so, the debtor must be sent a notice which gives the debtor 21 days to redeem. The notice must be mailed to the debtor within 3 days after repossession. Consumers who have paid the minimum 30% can get their cars back and reinstate the sales or loan contract if they pay the overdue payments, late charges and repossession costs, and cure any other defaults. A debtor can redeem a vehicle with this method only once during the lifetime of the contract. Also, it is unclear if certain types of defaults, such as the use of the vehicle for illegal purposes, can be cured.
2. Redemption Under 810 ILCS 5/9-623(c)(2): Applies to all consumers. A debtor can redeem any repossessed property at any time before the creditor disposes of it. However, the debtor must give the full amount of the balance of the contract, including all accelerated payments, plus the repossession and storage charges. Debtors usually won’t be able to do this unless they take out another loan or ask a friend or relative to purchase the car, assuming it's worth what is left on the loan.