Can a company repo your car if they are not on the title or contract and cannot show any proof they have ownership of the vehicle?

Question

I leased a car in oct of 2018. Shortly there after I received a text message from a company in texas saying they bought the contract. No word from the original company. They never said they were selling my contract. To this day I've heard nothing from them. Just this company down in texas claiming the car is theirs now. I've been asking for any type of proof they own the car or the contract for over a year. All I get is a welcome letter. They act like I'm buying a tshirt not a car. I told them I would put my payments in escrow until they could prove what they where saying was true. I talked to employee's and managers. I get nothing. Monday they came and yanked it out of my driveway damaging the whole front end, even though I was standing right there with the key. I'm just wondering if this is legal. Doesn't seem like it to me. Why would I send my hard earned money to a stranger? I've even looked them up on the bbb. Guess what? People that are paying off their cars STILL aren't getting their titles.

Answer 1

Contracts are transferable

In general, either party to a contract can transfer their rights and obligations to a 3rd party without needing to seek agreement.

The exceptions are where the contract explicitly says that can’t happen or the contract is one of personal service like an employment contract.

Did you keep making your lease payments?

Someone has the right to receive payment from you in accordance with the terms of the contract.

While it is clearly prudent not to take the word of an unknown third-party that you should be paying them what steps did you take with the original party the check?

Unless and until you had clear confirmation you should have kept making your payments as you always had. That is, you keep doing what the contract says you should do. Did you do that?

If you didn't keep making payments then you have broken the lease and the lien-holder can take whatever actions the contract and local law allow.

If the Texas-based person was the leaseholder then their actions are probably lawful. If they aren't then they probably aren't. If you have suffered damage through someone's unlawful actions you can sue them.