What are a vehicle lender’s repossession rights?

My husband and I bought 2 4-wheelers 6 years ago. They were each on a different deal –  $99 per month, 9.9% interest and the other was $49 per month at a different interest. 4 years ago, we called and asked to pay off 1 of the 4-wheelers. They gave us the payoff amount and we paid it. I thought that was the end of that. We recently were 2 months behind on the payments for the 2nd 4-wheeler. They came and repossessed the first vehicle that I thought was over 4 years ago. They said they are both on same loan and they would be back to get the other one too. I this right?

Asked on October 17, 2011 under Bankruptcy Law, Washington


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

There is no general answer, since this depends *entirely*  on the terms and conditions of the loans you signed. It is permissible to have vehicle 1 guaranty the loan of vehicle 2 (i.e be collateral for vehicle 2's loan) and vice versa, and this applies even though vehicle 1 was nominally paid off...it depends entirely on what you agreed to in the various loan documents. You should review the loan agreements in detail; the lender has whatever rights those documents give it, but not other or greater rights. If you are having trouble understanding the documents or have a question of interpretation, you should bring the documents to an attorney to review with you in detail. Again, the only real issue is what you agreed to, and therefore what  rights you granted the lender. Good luck.

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