What Time Does a Repo Man Come for a Car?
Learn about vehicle repossession: its causes, the process, your legal rights, and what happens once a car is repossessed.
Vehicle repossession is the process by which a lender takes back an asset, such as a car, that was used as collateral for a loan. This action occurs when a borrower fails to uphold the terms of their loan agreement. While it is a legal process, repossession often happens without a court order at the initial stage.
Understanding Repossession Triggers
Repossession of a vehicle primarily occurs when a borrower defaults on their auto loan, often due to missing or making late payments. Loan agreements typically outline the exact conditions that constitute a default, and some lenders may consider a loan in default after just a single missed payment.
Many loan contracts also contain an “acceleration clause.” This clause allows the lender to demand the entire remaining loan balance become immediately due and payable if the borrower defaults on any term of the agreement. While this clause grants lenders the right to repossess, they may choose to offer an opportunity to cure the default before taking action.
Beyond missed payments, other breaches of the loan agreement can also trigger repossession. These might include failing to maintain the required insurance coverage on the vehicle or violating other specific terms outlined in the contract.
When and Where Repossession Can Occur
A vehicle repossession can generally occur at any time, day or night, and on any day of the week, including weekends or holidays. The key legal constraint is that the repossession must happen without a “breach of the peace.”
A breach of the peace generally refers to actions that could provoke violence, cause a significant disturbance, or involve threats or physical force. For instance, breaking into a locked garage, using threats, or attempting to repossess a vehicle with an occupant inside could be considered a breach of the peace. Repo agents are prohibited from damaging property or engaging in confrontational actions.
Repossession can take place from various locations, including public property like streets or public parking lots. It can also occur on private property, such as your driveway or an apartment parking lot. Agents typically cannot enter a secured area, like a locked garage or a fenced yard, without permission, as this could constitute a breach of the peace. If a borrower objects to the repossession, the agent may be required to stop, as continuing could also be considered a breach of the peace.
The Repossession Process and Your Rights
When a repossession agent arrives to take a vehicle, they typically operate under “self-help” provisions, meaning they do not need a court order to seize the car. Agents are generally permitted to take the vehicle from an accessible location without direct interaction with the borrower.
Repo agents are not permitted to use physical force, threats, or violence during the repossession process. They also cannot break into a locked residence or a secured garage to take the vehicle. If such actions occur, they may constitute an unlawful repossession or a breach of the peace, and borrowers may have legal recourse.
Borrowers have the right to retrieve personal belongings left inside the repossessed vehicle. If present during the repossession, you can ask the agent to allow you to remove your personal items. Even if items are taken with the vehicle, the lender cannot keep or sell them, and they typically must provide a way for you to retrieve them.
Post-Repossession Steps and Obligations
After a vehicle has been repossessed, the lender is typically required to send a notice of intent to sell the car. This notice usually includes information about the sale date and the borrower’s options. The “right to redeem” the vehicle, which means paying the entire outstanding loan balance, along with any accrued fees and repossession costs, before the vehicle is sold.
If the vehicle is not redeemed, the lender will usually sell it, often at a public auction. The proceeds from this sale are applied to the outstanding loan balance and the costs incurred by the lender for the repossession and sale. If the sale price does not cover the full amount owed, the borrower may still be responsible for the remaining difference, known as a “deficiency balance.”
Lenders can pursue legal action to collect this deficiency balance. Any personal property left in the repossessed vehicle must be returned. Lenders or repossession companies are generally required to provide a process for retrieving these items, and they cannot typically charge a fee for their return unless there’s an extended delay in pick-up.