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Bad economy fuels repossession rise
Number of vehicle repossessions is on the upswing in Fredericksburg area, tow-truck drivers say
Date published: 8/14/2008
BY BILL FREEHLING The repo men have been out in full force this year, according to Fredericksburg-area towing companies. Repossessions occur when people stop making their payments on vehicles. Lenders hire tow-truck drivers to pick up the vehicles and return them to the financial institutions. Mike Mitchem, owner of North Star Towing & Recovery in Fredericksburg, has been doing repossessions for 14 years and has had his own business for three years. He has done more repo work this year than in any other. He estimates volume is up 50 percent from last year. Mitchem said he was repossessing about 100 cars a month earlier this year, in a territory that stretched from Richmond to Northern Virginia. He said volume has slowed somewhat in the past few months but is still high. Fredericksburg's increased repo volume is consistent with a national trend. More than 1.6 million vehicles are expected to be repossessed in the U.S. this year, said Tom Webb, chief economist for Manheim, which operates auto auctions across the country, including one in the Fredericksburg area. Webb said that tally is up 10 percent from repossessions in 2007, which itself was a record year. He attributes it to general economic weakness, higher gas prices and the end of a credit cycle that saw liberal loans going to people who couldn't afford pricey vehicles. Webb expects this year's tightening credit environment to significantly reduce repossessions next year. But for now, he said, cars of all makes and models are being repossessed--with California, Florida, Michigan, Ohio, Arizona and Nevada seeing some of the highest rates. Much of the repo work is done at night. Mitchem said his company typically goes out to get the car the same day it hears from the financial institution that owns it. He allows the car's owner to get child seats, or anything pertaining to a child's safety, out before towing the car, but otherwise the owner has to come to the North Star storage lot to collect any personal belongings left in the vehicle. Virginia law gives the car owner 10 days to get it back before resale. Mitchem said most lenders allow 15 days and are pretty lenient if a payment plan can be worked out. Barring that, the car typically goes to auction.
Date published: 8/14/2008
to MrsTowDiva - keep defending, but
(posted by
rcsdic
, Aug. 15, 2008 1:39 pm)
what Shanks did to me amounts to stealing. My sticker was displayed in a way that was acceptable and the Shanks driver failed to inspect my car fully for the sticker; what makes it worse is that they refused to admit that they had done something wrong, even after I pointed out that my sticker was displayed on my car. Maybe if they hadn't been out casing cars in the dead of night with no lights on or the driver had walked his fat a** all the way around my car, I wouldn't go out of my way to call them shady!
I read the article but
(posted by
rcsdic
, Aug. 15, 2008 1:23 pm)
as an unfortunate who had to deal with Shanks towing in the past, I wanted to spread my word of mouth about what a lousy company they are. They took my car saying that my parking sticker wasn't displayed correctly and then were Aholes to me when I went to get it back. My sticker was displayed in an appropriate way and I was lucky that my HOA ended up taking care of the situation for me. Shanks sucks; if they were the only choice I would pay a mechanic extra to come to my car rather than call on Shanks!
Did anyone READ the article?
(posted by
WickedRecovery
, Aug. 15, 2008 10:20 am)
The article is about REPOSSESSIONS ON THE RISE. All the comments below are from people complaining about parking enforcement. What does that have anything to do with the artice?
mmmm...........
(posted by
SingleLakeAnna
, Aug. 15, 2008 12:27 am)
To me they are doing there job. IF people buy a car they better pay the bill and that is how I see it!
My Opinion
(posted by
MrsTowDiva
, Aug. 14, 2008 9:34 pm)
It amazes me that in today society that people will be condemned for doing their job. I personally know the owner of Shanks Towing and he is a honest hardworking man as is his employees. You can not fault a man for doing the job he was employed to do. Everyone is entitled to their own opinion but remember who you trash because one day you will be in need of a wrecker yourself.
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