Contractual Agreement
I leased an car (Acura 2.5 TL) for 36 months, I have had it 14 month my contract states that if I return the car after 12 months and decide not to purchase it I will charged $400 dollars. When I attempted to return the car I was told that in addition to the fee charged it would be reported to a credit agency as a voluntary repossession. My questions is this legal and is there any recourse that I can take or agency that I can report this to?
Asked on 9/29/97, 2:31 am
1 Answer from Attorneys
Gregory Brittain
Gregory W. Brittain, Attorney at Law
RE: Car Lease/Early Return
I suggest check the Automobile Sales Finance Act, Civil Code §§2981 et seq. and the Vehicle Leasing Act, Civil Code §§2985.7 et seq.
In addition, from your description, it appears your lease gives you the right or early return.I do not think they would be justified in reportingyou for a voluntary repossession when you are exercising your rights under the lease.
They may nevertheless report you. I believe you then have the right to require the credit reporting agency investigate the matter.
I would research and confirm these pointsand read all that fine print in your lease,(that even we attorneys never read before we sign), before returning the car.
Answered on 9/29/97, 5:01 pm
