Dear Jon:

Last summer I was arrested for possession of cannabis. I went to court and it was thrown out. But last week I got a letter from Toyota Motor Credit Corporation saying they were repossessing my car because of the arrest! I have never missed a payment, but they say that I am in breach of the contract. This is totally unfair! Can they do that?

--Jim

 

Dear Jim:

Yes, it's extremely unfair. And I'm assuming that you were driving your car when you were arrested for the cannabis and that your car was impounded by the City.

Many standard motor vehicle retail installment sales contracts contain a provision which reads in part: "...pursuant to the terms of the contractit shall constitute a breachwherein the subject vehicle was exposed to confiscation, forfeiture or other involuntary transfer"

And when illegal drugs are found in your car, you are in violation of the Chicago Municipal Code, §7-24-225 which provides the authority for the city to seize the car and fine the driver.

So unfortunately, when you signed the agreement for a car loan which included a provision stating that seizure or forfeiture of the car for a violation of any law or ordinance would constitute default, you agreed that what would happen, will happen.

However, the bank has to prove that you were violating the law which created the opportunity for the seizure. In your case the possession of cannabis charge. This would require the bank to produce the arresting officer and far less likely, the lab tech that analyze the pot to determine what it is.

Ain't gonna happen! Fight the bastards for your car!

--Jon

 

Jon Erickson can be reached at ERICKSON & OPPENHEIMER, 773-875-4646.