vehicles repo'ed; how legal?

[tothouse]

What is the name of your state? Alaska
Our vehicles, three on one loan, have had insurance. When we moved, our boat insurance refused to renew our policy. We tried to get insurance and told the bank that. We talked to them every work day until we got insurance. They sent out nasty letters and phone calls. The two cars have been fully insured since we bought them. Because we failed to get FULL insurance by the 15th day of default they came and picked up all three vehicles, two cars and one boat. The reason that we have had a hard time getting boat insurance is that we left our boat in one town and moved to another.

My husband's Merchant Mariner's Document was in one of the vehicles. (It is a Federal Offense to take one of these.)
Have I missed any info?
My questions are:

1)Is it legal for them to take all the vehicles? Are they supposed to take vehicles that are insured?

2)Are we liable for all towing charges if we pay the loan off?

What is the name of your state? Alaska

[311Spider]

I would not think the bank would car too much about the insurance part. I think the bank is only concerned that you are keeping up with the loan payments. Were you not making payments during that time?

To answer your two questions, yes and yes.

[ForFun]

Originally Posted by 311Spider

I would not think the bank would car too much about the insurance part. I think the bank is only concerned that you are keeping up with the loan payments.

The bank cares about insurance because it needs to protect it's collateral. If the collateral is not insured and ultimately gets destroyed, the loan becomes unsecured, which is much riskier for the bank.

The loan documents almost certainly require that the collateral be fully insured.

[ecmst12]

Read through your loan documents (contracts) to see what remedies are available to the bank if you fail to maintain insurance on the vehicles. I would bet that it's in the contract that they are allowed to do this and you agreed to it (by signing).

[tothouse]

I did finally find where it states the banks rights. It does say that they have the right to take the vehicles at any time for any reason. I just thought that if you were trying to work with them that they should try to helpinstead of hinder the process.

No, we were not behind on any payments. I think that we will be buying a new vehicle- with cash.

[moburkes]

Originally Posted by tothouse

I did finally find where it states the banks rights. It does say that they have the right to take the vehicles at any time for any reason. I just thought that if you were trying to work with them that they should try to helpinstead of hinder the process.

No, we were not behind on any payments. I think that we will be buying a new vehicle- with cash.

How were they hindering the process? Your signed contract agrees to keep insurance, and you didn't. The bank wants the boat insured. They didn't hinder you from getting insurance. They can't help you get insurance, either.

[ForFun]

Originally Posted by tothouse

I did finally find where it states the banks rights. It does say that they have the right to take the vehicles at any time for any reason. I just thought that if you were trying to work with them that they should try to helpinstead of hinder the process.

No, we were not behind on any payments. I think that we will be buying a new vehicle- with cash.

Something seems strange about the whole thing. While failing to fully insure the collateral is probably a default of the agreement, how would they know? If you weren't behind in any payments and were only without insurance for a short while, I am surprised they wouldn't just ask you to immediately insure the collateral. After all, lenders do not make money by selling off collateral...they make it by keeping people in their debt.