Repossession: Get to Know Your Rights

This video teaches a valuable lesson about car repossession. It shows a truck driver towing a car. The tow truck driver was in such a rush to hook the car up while traffic was accumulating that he did not make a secure connection. The car fell off the tow hitch, and its front bumper fell off.

The scenario leaves viewers wondering, could the car owners sue the tow company for the damages?

In most circumstances, the answer would be yes. If the car had broken down and needed a tow, it would be the two truck driver’s responsibility to hook it up safely.

But in this instance, it looks like the car was towed for repossession. Most likely, the owner stopped paying for the car, so it is now owned by the bank. So, if anyone collects damages, it’s the bank, not the owner.

What Happens During a Car Repossession?

Car repossession may be carried out by a repo agency licensed by the local government. Sometimes, a bank, lender, or the legal owner may repo the vehicle. A repo may occur if the car owner defaults on their payments, refuses to insure their vehicle, or violates their lease in other manners.

If you get your vehicle reinstated after a car repossession, you must provide a release to the repo agency to get your car back. The release must prove the legal owner allows you to redeem your vehicle. It must also show that you paid the necessary administrative fees to the police or sheriff’s office.

What Happens if My Vehicle is Damaged During Repossession?

The repo company is technically responsible for any damage to your vehicle during repossession. However, officials cannot make the agency pay for damage to your car.

You may be able to sue the agency for damages in small claims court. However, since you didn’t own the vehicle when it was repossessed, the law may not be on your side.

You can also file a written complaint against the agency. If the repo company receives several complaints, officials may take disciplinary action.

Property Rights That Apply During Repossession

A repo agency may enter a privately owned area, such as a garage or gated community, to repossess a vehicle. However, the area must offer unrestricted access. They cannot enter a restricted gated community, a private property with a secured gate, or a person’s residential garage for repossession purposes.

If the repo agency damages your property during repossession, you may get reimbursed through a small claims court lawsuit.

During a repossession, the agency must also take an inventoried list of all personal items in the vehicle. However, if these items are not claimed within 60 days, they may be discarded.

Other Rights During Repossession

• You have the right to request proof that the agency carrying out the repo is licensed to do so.
• The repo company must display its license number or business name, address, and phone number on either side of its tow vehicle.
• The agency cannot remove your personal property from the vehicle during repossession. However, you may request that it be removed before it is taken away.
• A repo company must notify local authorities within one hour after repossessing a vehicle. If they do not make contact immediately, they must keep trying until they succeed.
• Your vehicle may be repossessed regardless of whether you are present.
• A repossesser cannot use threats, force, or violence when repossessing a vehicle. They are also prohibited from using misleading information during repossession. If either of these incidents occurs, call the police.