Young Georgia Man's BMW Repossessed Despite Making All Payments On Brutal 34.9% Interest Loan - And Dealer Refuses To Say Why. Glitch Or Scam?

2025-10-08 11:03:17

(MENAFN- News Direct) > A Georgia car dealership put the brakes on a young man's ride when it repossessed his vehicle after allegedly stopping the automatic withdrawals he'd arranged for the sky-high 34.9% interest loan. (1)

And now they say that the only way the 20-year-old Cherokee County resident can get his car back by paying the balance in full.

It's a bizarre case of a vehicle repossession despite the client reportedly both making regular loan payments on time, and keeping funds available for future payments.

As such, the young man's mother, Kimberly Carson, is speaking out, summing up her frustration in four words:“These people victimized him.” (2)

Meanwhile, the situation, and others like it, has sparked debate over whether this was a simple mistake or something more devious.

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Unfair repossession, or is there more to the story?

Carson told Atlanta's WSB-TV that her son got his 2010 BMW from U.S. Express Auto in Peachtree Corners, Georgia, and agreed to the high-interest loan because he had no credit and, thus, was using the car to help establish it.

She claims that her son paid the weekly $117 loan for eight months via automatic withdrawal from a bank account attached to her own, which“had plenty of money to cover his payments.”

Carson, however, says that U.S. Express Auto stopped taking the auto withdrawals in September, citing insufficient funds - a claim she disputed with screenshots showing the money available.

Nevertheless, the dealership repossessed the car and said that Carson's son can get it back if he pays for it in full by October 10. They told WSB-TV that“our company follows all contractual agreements and complies with applicable state regulations,” though the news report added that they are“refusing to give specifics” about their reasoning for the repossession.

Georgia law - like many other states - allows a lender to repossess a car without warning after a single missed payment. (3) What's unclear is whether Carson's son actually missed one, given her claims that the funds were available and that the dealership allegedly refused to process them.

Still, Denbeaux & Denbeaux Law, which deals in illegal repossession cases, notes that it's a violation of the law if proper repossession procedures aren't followed. That includes“Lender error showing incorrect delinquency” - though, again, it's unknown if that claim applies here. (4)

”WSB-TV also reported that U.S. Express Auto holds an“F” rating from the Better Business Bureau, with multiple customer reviews alleging“false repossession” and“unlawfully and illegally repossess[ing] vehicles.” (5)

As of now, Carson says her son still doesn't have his car back, and the dealership hasn't provided any further explanation. U.S. Express Auto told him in an email that the only way to reclaim the vehicle is to pay the remaining balance in full by October 10.

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How to protect yourself against illegal repossession

The Consumer Financial Protection Bureau (CFBP) published a report in 2024 regarding wrongful auto repossessions, including“servicers engaged in unfair acts or practices” such as repossessing vehicles“when consumers had made payments.” (6)

They added that such actions are harmful because“borrowers who are deprived of their vehicles are likely to suffer injury in the form of inability to travel to work and resulting lost wages and by inability to use their vehicles for other critical daily needs.”

If you find yourself caught up in what you consider an illegal repossession, Denbeaux & Denbeaux Law suggest taking photos and videos of the process and collecting written statements from eyewitnesses to strengthen your claim-and potential legal case. Many lawyers specialize in wrongful or illegal repossessions.

They also warn that other common illegal-repo scenarios include erroneously showing a paid-off lien, repo-company errors during the seizure, and the aforementioned mistaken delinquency charge.

It's also important to remember the“breaching the peace” law, which means that repo companies cannot use tactics like violence, or threats of such, to repossess your car. (7) They also can't force their way into private property like a locked garage or fenced yard, to access the vehicle (though an open driveway is fair game). The CFBP adds that a lender breaching the peace may give you legal recourse to lessen the amount you owe after the vehicle is sold.

How to navigate a repossession

If you're concerned about making car payments, or defaulting on a loan, the Federal Trade Commission (FTC) recommends discussing a new agreement with the lender as soon as possible - and before the car is repossessed. (8)

The CFBP adds that you should get any new agreement in writing, and to inquire about any negative effect it could have on your credit report. That way, you'll have evidence in the event that it does affect your credit after you're told it won't. (9)

If your car is repossessed, the FTC says that the lender can sell it, keep it or allow you to buy it back. They warn, though, that if the lender sells it, you may still be on the hook for the deficiency - the difference between the sale price and what is still owed on the car. For example, if you owe $20,000, and the lender sells the car for $17,000, you'd still owe the $3,000 difference.

As well, a repo can stay on your credit report for up to seven years. Equifax, suggests offsetting the damage by keeping debt levels low, paying bills on time, and maintaining responsible credit-card use. (10)

And if you're worried about getting another car with the repossession on your credit report, there are dealers willing to work with you.

New York state-based AutoLand USA, for example, recommends approaching the dealership with transparency and a realistic budget. (11)

Consumer advocates say illegal repossessions often trap young or low-income borrowers in cycles of debt while offering them little recourse when things go wrong. For many Americans navigating expensive loans, the Georgia case is a reminder to watch every payment closely and keep meticulous records.