Can a creditor repossess a car if we are not late on the payments?

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Can a creditor repossess a car if we are not late on the payments?

Our car got towed while at an apartment complex for being illegally parked and because the plates were expired (because its our third car and we never drive it). We received no notification and when we realized it had been towed, we attempted to pick it up. However, the tow place told us the car had been repossessed. We were in good standing with the loan and my husband (who the car is titled to) is active duty in the military and stationed in another state.

Asked on December 27, 2011 under Bankruptcy Law, Utah

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

A creditor may only repossess a car in accordance with the terms of the financing and security agreements. Most commonly, repossession is for defaulting on payment obligations; however, it is possible that the agreement(s) provide for repossession in other situations, such as if the car is towed under certain circumstances. You need to review the agreement(s)--they will define when the car may be repossessed, and it may not be repossessed except as set out therein.


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