Anonymous
Anonymous asked in Business & FinanceCredit · 6 months ago

What does it mean when a bank has a CAP on storage fees during a repo?

My car was repoed may 28th and I called the repo company to get a total, needless to say the receptionist was nasty and all she said was there is a CAP. Idk what that mean but on my redemption letter it just states I will owe a repo company $100 processing fee. Does or has anyone dealt with this?

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  • Never
    Lv 7
    6 months ago
    Favorite Answer

    Sounds like they stop charging storage fees after so long.

    For example, $30 a day for 45 days would be $1350. If their cap is 45 days, it stops accruing after $1350.

    The repo fee is often extra. Never heard one as low as $100.

    Storage fee is paid to a 3rd party, but charged to you.

    I have not heard of caps.

    Similarly, if your car is sold at auction, the auction fees will be charged to you. And a clean up fee if the lender determines to have it cleaned and many do. The nice cars may have a full detail while cheap ones, just all junk removed & vacuumed.

    A friend of mine worked for Toyota Motor Credit for years way back when so I heard lots of stories.

    Back then, their minimum repo fee was around $250 I think. More for hard to find cars. I never heard of a repo processing fee but it would not surprise me.

    If your storage fee is $30 a day for 18 days plus a $350

    repo fee and the $100, that is at least $990 over and above however much behind you were. Plus late fees.

    • Tonya6 months agoReport

      The bank charged me $650 for the repo. But it said on the bottom I will owe a $100 processing fee to the repo company. The loan has been reinstated and picking up the car tomorrow. I was just wondering about the CAP. Thanks so much for your answer.

  • 6 months ago

    No, I have not dealt with it but when the storage fees get to be astronomical, they stop charging so that you don't end up owing millions.

  • 6 months ago

    You have two choices.

    1. You can ask the bank

    2. You can ask strangers on the internet

    Choose wisely.

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