One of the most common types of repossession is vehicle repossession and most repossession companies will do the bulk of their business in this area. Since vehicles are highly mobile, often trying to complete a vehicle repossession is not an easy process, especially if the owner is aware that their vehicle may be seized. Individuals that work for or own vehicle repossession companies must be aware of what they can and cannot do from a legal perspective to get the car they have been sent to find.
Probably the biggest challenge to most agents or "repo men" is to locate and confirm the identification of the vehicle they have been sent to repossess. This means that they must somehow gain access to the vehicle to verify that the VIN or vehicle identification number on the car or vehicle matches the VIN on the repossession paperwork. The VIN is typically displayed on the dash by the front window and also on the driver's door. Owners can cover the dash VIN and keep the vehicle locked, making it difficult for the confirmation to be made.
Many consumers that know that their vehicle is going to be repossessed will engage in activities such as hiding the vehicle or locking it up on a property, or storing it somewhere other than their home or residence. Since individual states will have different laws regarding a vehicle repossession, each agent must be sure they are acting within the laws of the state with regards to going onto property and removing vehicles. Repo agents cannot come onto private property to just look around for the vehicle and the owner has no requirement to allow the agents to search the property. In some states and cases where the property resident calls the police, the repo agents can be charged with trespassing, depending on the actual activities they were engaged in while on the property.
In many states the repo agent can only remove the vehicle off private property if the vehicle is not in a locked yard or in a building that is locked. If the vehicle is parked on the driveway or on the road in front of the house it can be seized and towed or driven away. Public spaces are typically fair game, however if the owner is present and refuses to surrender the vehicle the repo agents cannot use physical force or threats to the individual to secure the vehicle. In all states vehicle repossession must not "breach the peace" or violate any personal or property laws. The repossession cannot damage or destroy any property in any state and if this happens the property owner has the right to claim for damages through a court procedure.
Whenever you buy any type of vehicle on credit always remember that until the final payment is made on the vehicle the creditor continues to have certain rights in the vehicle. These rights are determined by the laws of the state and the contract that you signed with the lender as the seller. If you don’t make timely payments on the vehicle, vehicle repossession laws may come into play. Your negligence in payment will usually give the creditor the right to seize your vehicle without going to court and with no advance warning to you.
There are limitations to the creditor’s right to seize your vehicle. These limitations include but are not limited how the creditor may seize the vehicle and resell it to go towards your debt on the vehicle. If the creditor violates certain rules, vehicle repossession laws would make it possible for the creditor to lose other rights or even be indebted to you for damages. Each state has its own specific vehicle repossession laws; it would benefit the consumer to know what they are. The consumers can find out what the specific vehicle repossession laws of their state are by contacting a consumer protection agency or through private legal counsel.
According to vehicle repossession laws, the creditor has the legal right to repossess as soon as your loan is in default. To find out what would be classified as a default the consumer should refer back to the contract, but a late payment could be considered as default. If the creditor allowed the borrower or buyer to make late payments or change the date of payments it would change the terms of the original contract; this could be agreed upon through a conversation or in writing, it would be better for the consumer if it were in writing. If the creditor continuously accepted late payments without complaining that action might be perceived as a change in contract, even if there was no direct conversation on the subject.
At the point of default, vehicle repossession laws would allow the creditor to legally seize the vehicle at any point and time, without giving any notice. They even have the right to come on your property in some states. When seizing the vehicle the creditor has to be careful not to commit a “breach of the peace”, an example of it would be use of physical force or the use of threats. If the creditor does commit a breach of the peace when seizing the vehicle it may result in a penalty for them and/or compensation to the consumer for any damages. Vehicle repossession laws could also determine whether or not the creditor is able to collect a deficiency judgment, which is the difference between what is owed on the loan and the amount that is received when the vehicle is resold.
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