How to Report a Vehicle Repossession

It is an awful feeling to have your car repossessed. You should always report vehicle repossession immediately, and although creditors may well be within their rights to repossess a car, there may be some limitation on those rights, which provides you with some possible recourse.

Instructions

1. Contact your lender. Chances are that they already called you or sent letters before repossessing the vehicle. You need to find out what their plans are for your vehicle.

2. See if you can negotiate with the lender. Depending on the situation, you may be able to redeem your car, although this can get expensive from the backlog of payments plus additional costs including penalties, repossession fees, storage, etc. If the lender plans to sell your vehicle either privately or at auction, state law usually requires them to inform you of this intention and the date and time of the sale so that you have the opportunity to buy your car back at that time.

3. Document all communications with your lender, including telephone calls, face to face conversations, email and hard copy correspondence.

4. Get in touch with your lawyer or with your state's consumer protection agency. They can assess the situation, inform you of your rights and help you with next steps. They can also tell you whether your state allows creditors to sue for "deficiency judgments" that allow them to sue to collect the residual loan balance owed.

5. File a police report is you believe that the car was repossessed illegally. If the lender was at fault, the police report provides some protection and some leverage.