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In some states they sure can. When you finance or lease a vehicle, your creditor holds important rights on the vehicle until you've made the last loan payment or fully paid off your lease obligation. These rights are established by the signed contract and by state law. If your payments are late or you default on your contract in any way, your creditor may have the right to repossess your car. Talking with Your Creditor

It is easier to try to prevent a vehicle repossession from taking place than to dispute it afterward. Contact your creditor when you realize you'll be late with a payment. Many creditors will work with you if they believe you'll be able to pay soon, even if slightly late. Sometimes you may be able to negotiate a delay in your payment or a revised schedule of payments. If you reach an agreement to modify your original contract, get it in writing to avoid questions later. Still, your creditor may refuse to accept late payments or make other changes in your contract and may demand that you return the car. By voluntarily agreeing to a repossession, you may reduce your creditor's expenses, which you would be responsible for paying. Remember that even if you return the car voluntarily, you're responsible for paying any deficiency on your credit or lease contract, and your creditor still may report the late payments and/or repossession on your credit report. Seizing the Car

In many states, your creditor has legal authority to seize your vehicle as soon as you default on your loan or lease. Because state laws differ, read your contract to find out what constitutes a "default." In most states, failing to make a payment on time or to meet your other contractual responsibilities are considered defaults. In some states, creditors are allowed on your property to seize your car without letting you know in advance. But creditors aren't usually allowed to "breach the peace" in connection with repossession. In some states, removing your car from a closed garage without your permission may constitute a breach of the peace. Creditors who breach the peace in seizing your car may have to pay you if they harm you or your property. A creditor usually can't keep or sell any personal property found inside. State laws also may require your creditor to use reasonable care to prevent others from removing your property from the repossessed car. If you find that your creditor can't account for articles left in your car, talk to an attorney about whether your state offers a right to compensation. Selling the Car

Once your creditor has repossessed your car, they may decide to sell it in either a public or private sale. In some states, your creditor must let you know what will happen to the car. For example, if a creditor chooses to sell the car at public auction, state law may require that the creditor tells you the date of the sale so that you can attend and participate in the bidding. If the vehicle is to be sold privately, you may have a right to know the date it will be sold. In either of these circumstances, you may be entitled to buy back the vehicle by paying the full amount you owe, plus any expenses connected with its repossession (such as storage and preparation for sale). In some states, the law allows you to reinstate your contract by paying the amount you owe, as well as repossession and related expenses (such as attorney fees). If you reclaim your car, you must make your payments on time and meet the terms of your reinstated or renegotiated contract to avoid another repossession. The creditor must sell a repossessed car in a "commercially reasonable manner" - according to standard custom in a particular business or an established market. The sale price might not be the highest possible price - or even what you may consider a good price. But a sale price far below fair market value may indicate that the sale was not commercially reasonable. Paying the Deficiency

A deficiency is any amount you still owe on your contract after your creditor sells the vehicle and applies the amount received to your unpaid obligation. For example, if you owe $2,500 on the car and your creditor sells the car for $1,500, the deficiency is $1,000 plus any other fees you owe under the contract, such as those related to the repossession and early termination of your lease or early payoff of your financing. In most states, a creditor who has followed the proper procedures for repossession and sale is allowed to sue you for a deficiency judgment to collect the remaining amount owed on your credit or lease contract. Depending on your state's law and other factors, if you are sued for a deficiency judgment, you should be notified of the date of the court hearing. This may be your only opportunity to present any legal defense. If your creditor breached the peace when seizing the vehicle or failed to sell the car in a commercially reasonable manner, you may have a legal defense against a deficiency judgment. An attorney will be able to tell you whether you have grounds to contest a deficiency judgment.

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Q: Can a finance company charge off your loan in February and repossess the vehicle in March?
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Why do finance companies hire private investigators for repo?

Finance companies do not ordinarily hire private investigators to repossess a car. They normally hire repo professionals to do that. These folks investigate the whereabouts of the vehicle, identify it, and tow it back to the rightful owner, the rightful owner being the finance company. However, the vehicle is usually towed to a staging lot, usually the repo's business address, and arrangements are made to make up the payments by the buyer, or, repo places a for sale sign on the vehicle.


Can a cosigner coowner repossess a vehicle if the primary has not defaulted payment on the loan?

A cosigner or coowner cannot repossess a vehicle. That is something the leinholder does.


What is a reputable source for information on a vehicle finance calculator?

A reputable source for information on a Vehicle Finance Calculator is Carmax. Carmax is a reputable Company and they have alot of resources available to help you estimate everything about your cost, from monthly payments to the total cost of a vehicle.


Is it legal to take your car back from title loan company after repo?

You're talking about trying to repossess it from the repossessor? Short answer, no. You're committing theft - possibly grand theft, depending on the vehicle's value. But the repo agent coming to repossess your car isn't commiting theft. Double standard? No. The thing of it is, it is NOT your car - the lienholder is the sole rightful and legitimate owner of the vehicle. The repo man isn't taking your car away - he's reclaiming the lienholder's property after you failed to meet the terms of the finance arrangement.


Can a finance company repossess your car if you are less than 30 days late?

Yes, but it's not always that simple. While it's easy for a finance company to come and repossess your vehicle for being 30 days late, the courts don't always agree with that action. For example, if you've been paying on your vehicle for some time and you get behind, if you have continual contact with the finance company and all of your contact information is correct, court may rule that the finance company had no reason to assume a material breach of contract for a default of 30 days. However, if you avoid contact with them (won't answer your phone), your address is incorrect, and/or you're still pretty early in your agreement, courts will most likely see it as a material breach. Unless your contract or state law says otherwise, you also have the right pick up where you defaulted (by paying the defaulted amount in full) on your loan and you're not forced to pay the entire amount of the loan. Furthermore, you should keep in mind that, in states that have adopted the Uniform Commercial Code [UCC], after you pay 60% of the balance of your loan, a repossession and disposal (resale) is no longer beneficial for the finance company because the resale of the vehicle would satisfy the debt (so they couldn't come after you for the remaining balance) and any remaining funds from the sale, minus reasonable charges, is required to be paid to the consumer. Most respectable finance companies/banks will not repossess a security interest until it is easily provable in court that they had reason to believe a material breach of contract. However, "buy here, pay here" type places tend to be a little looser with their rules, but typically end up paying for it when they do get sued for doing so.

Related questions

Can a finance company change your registration when trying to repossess your car?

Is it legal to? NoIs it possible to? NoThe finance company does not have possession of the vehicle so can do nothing with the paperwork on that vehicle until the do secure possess of it.


In Maryland can a finance company repossess a vehicle that is 38 days in default?

Yes, the lender can recover the vehicle any time after the lending contract becomes in default.


Can a finance company repossess a vehicle in Louisiana when the loan originated in tewas?

Yes. Lenders repossess vehicles in states other than the one they are located in on a regular basis. No prior notice, replevin order or license is needed for a repo agent to take possession of the vehicle.


In Texas do they have to inform you before they repo your vehicle?

It is probably stated in your finance or lease agreement that if you don't make your payments on time that the finance company has the right to repossess the vehicle. Consider yourself informed. Long story short, if you don't want your vehicle repossessed you need to make your payments.


Can they repo a car once you have paid up to date but still owe 7000?

If you are up to date with your repayments then the finance company are unable to repossess your vehicle. If you have defaulted on your payments then they are able to repossess the car, the number of missed repayments which qualifies for repossession will be stipulated on the agreement you signed when you first purchased the vehicle.


How long after a missed car payment does the finance company repossess the vehicle?

The question is, "Why would you worry about a missed payment when you have interest in the vehicle?" The money that you used as your down payment and any payments you have made total your interest in the vehicle. Why are people running from the repo man when in fact you can place the finance company on notice that, if your interest is repossessed, you will file criminal charges in federal court against the finance company and get triple what the car is worth. I guarantee you they won't take it. You can also put a mechanics lien on the vehicle to protect your interest in it.


Can you get your finance company to repossess a vehicle from a second party?

If the lein holder didn't authorize a repossession can the person of ownership take charge and collect the vehicle, even if it's paid on time but both parties on reistration are no longer in agreement?


How long does it take for the bank to write off a vehicle if they are unable to repossess it?

I think it varies on how long and who the finance company is but the last time I made a payment on my truck was November of 2007 and its January of 2009 and im sill driving it


Can the company keep your license plate after they repossess your vehicle?

Only if the tags stay with the car in that state.


Who is the lessor vs lessee in auto registration?

The Lessor is the finance company. The lessee is the person leasing the vehicle from the finance company


Does a finance company have to auction a repossed car in Florida?

Yes, a finance company or a bank is required to send the vehicle to an auction to dispose of it.


Who owns a car when the finance company refuses to pick it up?

As long as the finance company holds the title, they effectively own the vehicle.