Auto Financing After Repossession

What Are Your Car Repossession Rights?

While auto repossession laws differ from state to state, there are usually certain provisions that dictate how — and under what circumstances — a repo can take place. Some examples of this may include:

• Prior Notification: Some states require that a customer be notified by mail before a repossession occurs, in order to give one final opportunity to bring the payments up to date.
• Vehicle Location:  A car may be seized and towed away by a repo company if it is parked in plain sight and not locked behind a gate or in a garage.
• Getting the Car Back: There will be a stated path by which the customer can get their car back, generally via paying back-payments and repo fees.
• Wrongful Repossession: If a lending company made a mistake that led to them erroneously repossessing a vehicle, the customer may be entitled to compensation, legal fees, and/or other costs associated with the wrongful repo.

These are generalized examples of some common repossession-oriented laws and consumer protections that exist in the United States. Be sure to familiarize yourself with the laws that affect vehicle repossession in your specific location.