If they repossess your vehicle, they will hold it for 30 days and sell it at auction at which point you will owe for whatever was left over on your contract plus repo/auction fees, less the proceeds from the auction.

OC's guess is right on.

Regarding collection steps, they use the same procedures to collect almost all debts: letters that get scarier in sequence combined by increasingly rude collection calls.

Vehicle repo's for lease/finance residuals are no different.

This is a good question, Mate! I wish that I had a definite answer for ya, but I don't off the top of my head. Let me dig through my notes and I'll see if an answer can be found in there. It may take a day or two, can you be paitient? I've got a hectic schedule ahead of me for a few days.

Thanks Ottawa Chap, I guess what I should also ask is what is the proceedure they use to collect any balance outstanding and will they accept a payment arrangement. How does this affect my credit rating?

My guess would be that the vehicle is later sold, then the proceeds from the sale applied against the outstanding loan balance. If there's any residual loan balance left afterwards, you would be responsible for covering that - along with any additional fees.

Due to ongoing medical conditions,I have been off work since August. Scotiabank is threatening to repo my vehicle. What I wish to know is what happens after they repo my vehicle as I owe $20,000 on it, I do not own my home and have very little assets and I am expecting return to work in Jan. Please help!

3527069Mb,

Your credit should not be affected by anything that happened 10+ years ago. You should order copies of your both your Equifax and Transunion reports and see what is reporting negatively there.

Paying anything to old debts that have past their statute of limitations raises the possibility of the "expired" debt being reactivated, thus hurting your credit more than simply not doing anything at all. You are better off letting sleeping dogs lie, as long as you don't plan on using that particular creditor again. (Although I'm confident that they may still lend to you if the debts really are that old.)

If your credit is poor now, it will have nothing to do with mistakes made 10 years ago. As Janet mentioned, fix the items that have occurred more recently and you will see your credit get better. Hope this helps!

Well actually the way to get a better credit rating is to go and get a secured credit card and use it and pay it off on a regular basis and that will take about 6 months. to help.

Thanks Janet
If I pay off all the places I owe under both Equifax and TransUnion and no longer owe anybody how long does it take to get a good credit rating back? Of course that is the ultimate goal.

I think the easiest way to do this would be to contact the credit bureaus both Equifax and TransUnion and start with the ones that are on your bureaus. They will give you that much information and I am sure the rest will work itself out.