Car loan repossession

[Phillip Scott]

Jurisdiction

Texas

Sold a car by contract for $2400 dollars to be paid at $208.00 per month with 416.00 down. Payment ,he is now 3 months behind .what can I do to repossess the car?

 

[Zigner]

Sold a car by contract for $2400 dollars to be paid at $208.00 per month with 416.00 down. Payment ,he is now 3 months behind .what can I do to repossess the car?

Did you transfer title to the car to him?
If yes, were placed on title as a lienholder?
Either way, does your contract allow for repossession of the vehicle?

 

[army judge]

Sold a car by contract for $2400 dollars to be paid at $208.00 per month with 416.00 down. Payment ,he is now 3 months behind .what can I do to repossess the car?

What does the alleged contract say about your ability as lender to repossess the vehicle?

Texas repo law restricts how creditors can take your car. If they break the law, you can sue them for wrongful repossession. Borrowers also have rights to prevent repossession and get their cars back. This article details the repossession process in Texas and outlines the rights of both parties if it happens.

The ways creditors can seize personal property for nonpayment of debt differ by state. Some require more notice to borrowers or more days creditors must wait before repossessing the car. In Texas, lenders are entitled to "self-help" repossession. This means they can hire unlicensed repo companies to tow away your car. But "self-help" is not a blank check.

Texas repo law restricts how creditors can take your car. If they break the law, you can sue them for wrongful repossession. Borrowers also have rights to prevent repossession and get their cars back. This article details the repossession process in Texas and outlines the rights of both parties if it happens.

Section 9.609 BUSINESS AND COMMERCE CODE CHAPTER 9. SECURED TRANSACTIONS
of the Texas Business and Commerce Code governs auto repossession in Texas.

It allows repossession by a lender who has a security interest in the car.

This is almost always the case because you use the car as collateral to secure the loan necessary to buy it.

This makes a car loan a secured debt.

You promise to make monthly payments to pay down the debt or you lose the car.

Under Texas law, if you miss even one car payment — or pay after the grace period has expired — the lender can take the vehicle.

Repo men/women in Texas don't need a permit to tow your car.

In fact, most repossession agents are unlicensed.

A lienholder can take your car with no prior notice to you. But there are certain limits on vehicle repossession. Repo men may not need a court order to seize personal property, but they do need to make it happen without breaching the peace. A breach of the peace occurs when conduct is likely to cause a public disturbance or loss of public order.

@Phillip Scott Do you have a lawful lien on the vehicle's title?

Or, did you NOT sign over the vehicle title and attach a lien to it, as the lender?


Car Repossession in Texas: Your Rights & What to Do After Repossession
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