Vehicle repossession is a situation where the banks or the lenders take ownership of the vehicle due to non-payment. This is one of the trickiest areas of law that many consumers have lack of information.
This is a small guide covering some nuances of car repossession which you should consider while carrying on the process.
Who is the owner of the car until you pay it off?
The bank or the lender is the actual owner of the car until the end of your loan. It is legal and is mentioned in your vehicle title. In the section of “lien holder” is the name and address of the bank. As soon as you end up your loan, bank will send you a “release of lien”, which means that the car already belongs to you.
When you creditor has rights for car repossession?
Vehicle repossession laws differ from state to state. But generally creditors have right for a vehicle seizure if:
- you miss the payment even for a month
- you sell the vehicle
- you stop paying the insurance for the vehicle
- the vehicle is damaged, stolen or something else that can depreciate its value
- your financial status gets worse and you aren’t considered to be able to make the payments
What are your rights of personal property during car repossession?
The repo man can take your car from wherever he wants without breaking so called the “breach of the peace”. In some states they can even break into your garage to remove it. But you surely have all the rights concerning your personal property left in the car. They shouldn’t be damaged or stolen during car repossession. The creditor is fully responsible for your property and should send you the list of your items and inform you how you can claim them.
What is “right to cure?”
If you are under the threat of vehicle repossession due to missed payments you still have a “right to cure”. This means you can get a few extra weeks to pay back and regain the car. Unfortunately not all the states of U.S. have this privilege.
Now you are armed up with basic knowledge of car repossession, but I’m going to continue the discussion of this issue and open more secrets.
If you have any questions or need any legal help never hesitate to contact us either by emailing or dropping in the comments.
