What can you do when a vehicle is in your possession and subject to repossession but the lender has refused to recover the vehicle for the last three years?

Lenders are not legally required to take possession of the vehicle nor will they if the vehicle has greatly depreciated. In such cases the lending institution will usually file suit against the borrower for the full amount of the loan plus all applicable fees and legal costs. The borrower has no recourse unless they are sued and then they should be certain to respond to the summons and to use their legal rights to protect personal and real property that is considered exempt from creditor attachment under the laws of the state where they reside. It might prove beneficial for the borrower to speak with an attorney about possible solutions to the problem.