Vehicle Repossession

A creditor's right to repossess your car is subject to some limitations. Normally, your creditor has legal authority to seize your vehicle as soon as you default on your loan. Once you are in default, the laws of most states permit the creditor to repossess your car at any hour of the day or night, without prior notice, and to come onto your property to do so. However there cannot be a breach of the peace.

Once your car has been repossessed, your creditor may keep the car as full compensation for your debt or resell it. Your creditor must tell you if it wants to keep or sell the car. You are entitled to be able to buy back the vehicle if the creditor tries to sell it by paying the amount owing on it plus the expenses connected with its repossession. Any difference between what you owe on your loan and what your creditor receives from the sale of the vehicle the creditor may sue you for.

This report is general in nature and not intended as a reliability report on any company, service or product.