What happens if my car is repossessed?
If you have financed your vehicle, you should know that you don’t own it until the last cent is paid in full – until then, the creditor (institution who holds the loan) has the right under law to take the vehicle back if you default on your loan. Not only that, but if they sell your vehicle, you will continue to owe the difference if the sales’ price is lower than the loan amount. The actual rules for default are different in each state – but your contract should state them. Sometimes, being late by as little as one day is considered default, and the creditor then has the right to take your car without warning. If your car has been repossessed, first check out your contract. Be sure the creditor didn’t break any of the contract’s rules when repossessing – although they can take your car from the street or the driveway without your permission, they cannot break into your garage, for example, to get the vehicle. If you believe the creditor caused a ‘breach of peace’ (went beyond reposses
