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The latest Q & A on a compliance issue, as provided by the League's General Counsel at Norman, Hanson & DeTroy.
Question: We have a member who is not paying his vehicle loan. We have sent out a right to cure notice and have engaged a repossession company to get the vehicle, but it has had no success in retrieving it. It galls us that he gets to keep driving around in the vehicle while not paying for it. Do we have any other option to get possession of our collateral?
Answer: Yes. In Maine, there is a legal proceeding called "Recovery of Personal Property." While it is a lawsuit commenced by the filing of a complaint, it is a summary proceeding, meaning that the sole issue before the court is which party is entitled to possession of the property. Given that limited scope, the procedure is designed to be short. You must serve the member with a complaint and summons, which summons includes a specific date and time of the hearing. The summons must be served at least 7 days before the hearing. The District Court has jurisdiction over these matters, and most of the courts have regular days each month set aside for such hearings. You call the court to get a hearing date, put it in the summons, and get it served. You and your attorney then show up for the hearing, which will result in judgment being entered in the credit union's favor. A week later the credit union may obtain a Writ of Possession that the sheriff serves on the member who must then surrender possession of the vehicle. This lawsuit is relatively short; and assuming the sheriff can locate the member, it should take no more than a month or so from the time you contact your attorney to the time you have possession of the vehicle.
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