An auto loan is a binding contract. If you fail to make the payments on your loan, the creditor reserves certain rights. Any contract you sign at an auto dealer specifically states that the title holder (the bank or finance company) reserves the right to recover the vehicle in the event of a default. The laws regulating the methods a creditor uses to recover the property vary by state, and Florida, like many states, puts few restrictions on the rights of the creditor if you fail to pay.
Seizure
A creditor is legally allowed to repossess your vehicle at any time without notice. They are also permitted to impose the fees for the retrieval added to the total unpaid balance of the loan. They may not "breach the peace" by using violence or threats of violence in recovering the vehicle.
Belongings
The items in the vehicle not considered permanent enhancements such as a stereo or luggage rack may not be sold to satisfy a portion of the unpaid debt. If you've left valuables in the car, you are permitted to recover them from the repossessing agency. If there is a dispute about missing items, you may be entitled to compensation if you can prove that the items were in the car at the time of the seizure. In a civil matter such as this, it is always best to contact an attorney.
Licensing
Recovery agents must apply for a class "E" recovery license from the state of Florida. Applicants must submit the required personal and employment information and proof of completion of a Recovery School training program.
Deficiency Judgment
When the creditor sells your car, they may sue you for the difference between the amount garnered in the sale and the total amount owed including the outstanding loan, collection fees, lien sale fees and recovery fees. This remainder is called a deficiency judgment.
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