The Federal Trade Commission stipulates that your creditor has the right to repossess your vehicle as soon as your payment is late, if that is part of the terms of the loan agreement. Know your rights when it comes to auto repossession and be sure to communicate with your lender if your payment will be late.
Considerations
According to CNN, a repossession is considered legally done when a repossession agent is in the vehicle or when the vehicle is off of the owner's property by way of a tow truck.
Time Frame
Depending on the lender, a repossession may stay on your credit report for up to 10 years. The time begins when the loan is officially declared delinquent by the lender.
Features
According to Bankruptcy Law Firms, it is possible to negotiate with a lender and get a vehicle back after repossession. How much you would have to pay on the loan to get the vehicle back depends on the lender.
Misconceptions
A lender is not required to give written notice regarding a repossession prior to having the vehicle taken. State laws vary on when a lender must provide a borrower with information regarding the repossession after the vehicle is impounded.
Warning
The Federal Trade Commission warns that if your lender agrees to any special considerations that allow you to avoid repossession then you should get those conditions in writing.
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