Will the banks not reposes the vehicles and sell them on auction or will the clients retain ownership in the vehicles?
I stand corrected, but if the contracts are declared nulled and void, I believe that the following will happen:
1. The banks will repossess all vehicles from all clients where agreements have been declared null & void.
2. A new process will commence whereby the bank will be forced to place clients back in the position they were prior to the agreement.
3. Some premiums paid will be returned. Premiums returned will be less, as the bank will take usage of the vehicle in consideration and take fees from the premiums.
4. People who sold vehicles and paid the money generated as a deposit will have to be refunded that deposit. (In fact, in some instances the banks will simply return the new vehicles to those clients, depending on what cars they sold prior to the agreement, the deposit paid, etc.)
5. The banks will then sell the repossessed cars in an attempt to make up some of their losses.
I really doubt if the banks will take a 100% knock and lose all the vehicles. There are some acts, which the banks managed to squeeze in, which protects them from something like this. Also, their insurance will most probably pay out all their losses with the addition of a little bit of profit as well.
