What Rights Does the Repo Man Have?
The "Repo Man" is a slang term used to describe the person who comes to repossess a car when the owner has fallen behind in his payments. This position puts the repo man into harm's way, as he is tracking down vehicles that may be a person's only means of transportation, and towing them away regardless of the owner's objections. Nevertheless, the repo man sent to repossess an automobile has the legal rights to secure the piece of physical property because the vehicle purchaser has broken the purchase contract.
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Legal Right of Seizure
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Although you may drive a vehicle, until the loan is paid off, the vehicle -- or any other physical property that was financed through a lender -- belongs to the person or organization that provided the financing. In the case of a car, the vehicle belongs to the bank until the last payment is made, and the title is formally cleared of the bank's lien. This means that if the payments aren't made, the purchaser is in default, and the purchase agreement is void.
Defaulted Loan Contract
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Legally speaking, defaulting on a loan contract means that the terms of the loan contract are no longer in force. The terms of the contract are unique to each purchase, and are explained in detail in the loan paperwork. However, once the loan goes into default, the owner of the property has the legal right to take back her property. The person hired to repossess the property is often called the "repo man."
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Authorized Agent of the Owner
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The repo man acts as an authorized agent of the vehicle owner, the bank. This means that the person hired to repossess a vehicle or property has the full legal authority to take repossession, as if the bank president came to your front door and demanded that you turn over the keys of the car to him.
Retrieving the Owner's Property
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In most states, the repo man has the right to secure the bank's property without warning, at any time of the day or night and can come onto a person's property to do so. Once the loan goes into default, the laws of most states permit the creditor to repossess her car. However, the repo man cannot "breach the peace," which means that he cannot threaten physical harm or damage personal property during the act of repossession the vehicle. In other words, the repo man can come into your driveway, hook up to the vehicle and take it away; he can even open a garage door to gain access to the vehicle. He can not, however, break the garage door down to gain access to the vehicle. The repo man or bank who hired him must also return any personal property that is in the vehicle at the time it is repossessed.
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