Repossession of property is not a popular topic to discuss – unless you are a fan of the (2007-2014) TV series “Operation Repo” or similar shows. Television entertainment makes having a car repossessed look dangerous or even glamorous at times, but in reality, it can be devastating. If you’ve fallen behind on your car loan payments, you may be worried about the possibility of your car being repossessed. We understand and want you to know you are not alone.
Owning a car is often a crucial part of daily life, providing us the freedom and convenience to get where we need to go. However, maintaining a car can be challenging, especially when you’re facing financial difficulties. Like they say on Operation Repo, “It ain’t no joke if you don’t pay your note.”
Let’s talk about what happens if you are at risk of your car being repossessed and some important considerations associated with repossession.
In some states, but not Alabama, lenders must follow specific rules when repossessing a car. In most cases, they must provide you with advance notice before initiating repossession. This notice typically includes information about the missed payments and a timeframe for you to catch up on your payments to avoid repossession. Be sure to read any notices you receive from your lender carefully and take action promptly to address the situation.
“Breaching the Peace” During Repossession
When it comes to the repossession process, there are rules in place to protect your rights. During the filming of Operation Repo, possession of a vehicle is full of drama and chaos, but in reality, repossession agents and lenders cannot engage in aggressive or threatening behavior. They are not allowed to “Breach the Peace” while repossessing your car. Breaching the peace refers to actions that could endanger your safety or provoke a confrontation.
If you believe the repossession process was conducted improperly, you have the right to report it to your local Police Department or Sheriff’s Department.
For more information, visit MyCreditUnion.gov
