Okay, so what kind of property may have been repossessed? Well, let’s consider the word “repossession” for a second. The word suggests repossession, which means that the creditor repossessing the property to ‘repossess’ it must have owned it once in the first place. Sure, that makes sense, right?
Now, if you buy a car on credit, you don’t really own it until you pay it off, the bank does. See that point. Now, while it is true that you are in possession of the car, it is not your property, but you have agreed to pay for it over time, and once it is fully paid for, it will be your property, when the bank he sends her the pink note and removes their bond in the car.
If you don’t keep making the payments you promised, the bank will want to repossess your car. This is called recovery. Then they will sell the car to someone else or put it up for auction.
What type of property can be seized?
Anything you buy on an installment plan will come with a contract, one that you sign promising to make payments and pay interest. If you don’t pay the creditor or bank, they have the right to repossess that item or repossess it. After all, they own it, not you. People buy things all the time where they promise to make payments on time and sign a contract to do so. Think about the things you may have bought or are currently paying for.
Maybe you financed some furniture, a smartphone or a car? Maybe he bought an RV, boat, jet ski, or some other toy? All of these things can be seized.
If you installed an inground pool and bought it on credit, obviously it can’t be dug up and repossessed, but the creditor could put a lien on the property and, with a court order, force you to pay.
If you don’t pay your house, the bank can’t repossess it, but they can foreclose on it and, with the help of the court, force you out. Foreclosures may look like foreclosures in that they amount to the same thing to you, but they both have a different legal definition and different sets of rules.
Do I have protections under the law during recovery?
Yes, you have protections under the law during a recovery. A rep can’t touch you, except in self defense. If they threaten you with jail or prison, it is an idle threat and it is actually against the law for them to make such threats.
A repo cannot force you out of your car or reach into your pocket to repossess the property. A repo can’t get into your backyard through your gate, open it and cut the lock to get your car back, nor can they get into your garage to get the car back. They can take it from a public parking lot or take it if it is parked in your driveway or on the street.
A furniture company can’t break into your home without your permission and get your furniture back if you don’t pay, but they can report you to the credit bureaus and ruin your credit.
The repo company must first inform the police that they are going to repossess your car. This way, the police will know that it is not being stolen in case you call and report it missing. A repo company can request a police escort to protect them while they recover the property they are looking for, but can deny them entry as it is a civil matter. The police are only there to keep the peace between the parties. The police cannot intervene, unless the company has a judgment and a court order.
Can I get my car back if it’s repossessed?
The law gives you a remedy to get your car back, if you pay the bank that finances it all the money owed, plus penalties, plus repurchase fees. You can also negotiate with them to get a more favorable deal. It is recommended that you have an attorney act for you in this case.
There are consumer credit laws on your side, but remember that the bank owns the car until it is paid for and the furniture lender owns that furniture until it makes the last payment as promised when you signed the contract to finance it.
Law firms are there to help
Law firms know that people can become entangled in complex financial difficulties, it is often a series of problems that causes such situations. They can help you figure it all out. Many offer a free 30-minute consultation. They can explain the law and your possible options.
If they can help you they will tell you in advance, if not they will let you know as well. Being informed will help you make the best decision for the most favorable financial result.
