What to do when the repossession man shows up depends on where you are. It also depends on if the seller has a court judgment against you. If there is a court judgment against you, you will probably know. This is because you probably went to court about your car or received a summons. If you were served a summons but did not show up in court, you might also have something called a default judgment against you.
Never forget these two things:
- Do not keep your car contract in your car
- Try not to keep anything valuable in your car.
If there is a judgment against you:
Remove all your valuables from your car right away.
Sometimes your possessions will still be in the car when the repo man arrives. Try to get them out before the car is taken. Repo companies often charge very high fees to “store” your possessions. Also, the repo company might just get rid of them before you have a chance to get them back.
If there isn’t a judgment against you:
On-Reservation
The laws on the reservations give you a good defense against repossession. It is illegal for someone to repossess your car or mobile home without a court order. Unless you give him permission!
Do not voluntarily give up your car or mobile home. You will still have to pay the rest of what you owe on the car, unless you make a specific agreement with the seller that cancels the remaining payments.
In some cases, you might work out a deal with the seller. For example, they might agree that you don’t have to pay anything more on the car if you let them repossess it. Do not agree unless they will put it in writing.
Off-Reservation
A lender does not need a court order to repossess your vehicle.
Even if you have only missed or been late on one payment, the company might try to repossess your car. Some companies will repossess when you have only been four days late on one payment!
Repossession can sometimes be illegal without a court order. If you make a strong, verbal protest, your car cannot legally be repossessed.
DO NOT threaten to harm, or actually harm, the repo man. Also, don’t do anything that could get you hurt.