Within 14 days after repossession the lender must give the debtor a written notice under section 94 of the Code stating:

  • The estimated value of the goods

  • The enforcement expenses that have and will accrue

  • A statement of rights and obligations as required under the regulations

  • That the debtor has 21 days from the date of the notice to redeem the goods, after which they will be sold.

 

A borrower may apply for compensation under section 98 of the Code if the goods were sold for less than the best price reasonably obtainable. Note however that particularly in the case of motor vehicles, lenders will be entitled to sell goods at auctions at wholesale prices, which will be far less than a retail price. So while a client may be outraged at the low price obtained for the vehicle when sold at auction, it will realy be grounds for claiming compensation.