Creditors will likely have contacted a delinquent borrower one or more times to collect back car loan payments. At that time, borrowers will be told that their car may be repossessed by the lender if payments are not made promptly. Creditor contact of this type is your warning that repossession may be imminent. In most states, creditors have the right to seize a delinquent borrower's car without any special court permission and without notifying the borrower exactly when or where the repossession will take place.
Repossessions can take place at a borrower's home or workplace (e.g., parking lot) or other locations where the car is parked. State laws vary somewhat, so consult a local attorney for specific details. There are also special repossession rules for military personnel. In most states, repossessions can take place anywhere or anytime as long as they don't "disturb the peace." When a car is repossessed, borrowers are entitled to take back any personal property left inside it for a limited period of time.
We would like your feedback on this Personal Finance Frequently Asked Question.
