Most every bank has had to repossess a car at one time or another. When you take possession of the car, it’s very likely you are also taking possession of any personal items inside the care as well. According to the CFPB’s Fall 2016 Supervisory Highlights, recent exams have found that personal belongings are not being properly returned to the owners. Personal belongings are often being held until after a storage fee is paid. If the fee is not paid, the items were tossed out, often after 30 – 45 days because the companies had determined that State Law didn’t require them to hold onto the items any longer.
Regardless of what your contract may state and any State Law, the CFPB has found this to be an unfair practice. If State Law allows you to impose a charge and you’re looking to do so, it needs to be disclosed in your agreement. Then, instead of holding the property until the fee is paid, items should be returned and the fee added to the loan balance.
Diane joined Banker’s Compliance Consulting with over 10 years of compliance experience and over 15 years of experience within the financial industry. Diane is a Certified Regulatory Compliance Manager (CRCM) and has a Bachelor’s Degree in Sociology with a concentration in Criminal Justice. She is a graduate of the Schools of Banking Compliance School and has participated in various other training opportunities throughout her career. Diane understands firsthand the struggles banks face in building and maintaining successful compliance programs. Her experience and common sense approach to consumer compliance is a great asset to our clients.
Diane and her husband have two kids who keep them busy. She enjoys running and other sports and is a big Bugs Bunny fan! She’s a bit crazy in that she does enjoy reading some of these regulations and she’s a “crazy cat lady!” Her cat tales are hilarious!