What Does a Repo/Recovery Company Do?

car towing_optA car repossession company is hired by the lender to get your vehicle if you fail to make on-time car payments or you don’t have adequate auto insurance. How the car is taken away from you will depend on the contract which you signed as well as the laws of your state. The contract will state clearly the terms that constitute a default. In one case, a default may be failure to pay the loan payments on time and in another a default may arise if the car is used in the wrong manner.

How repossession companies get your vehicle

In most states, the creditor is allowed to repossess the car anytime when you default. The repossession company doesn’t have to give notice and can come to your property to get the car. However, they should not commit a ‘breach of peace’. This will depend on your state laws. In some states, creditors or the repossession companies that represent them are not allowed to use force or even remove you by force from the car.

Some states allow the repossession company to get the car from your garage so long as the doors are unlocked. Most repossesses will not tamper with your home or garage in order to get the car so as to avoid the hefty penalties imposed when there is a breach of peace.

What happens when you refuse to give the car?

The repossession company in Clayton will target the areas where you are likely to leave the car such as public parking areas or in your open garage. They keep track of your whereabouts in order to locate the car. Most of them succeed at finding a car within the first few minutes because they use tracking devices to locate your car. Some lenders even install electronic disabling devices on cars so that they cannot start if payments are not made on time.

In most cases, the repossession company will not use any physical force to make you give away the car. But this doesn’t mean that you can keep the car. They will try and get the car at any other opportune time. A repossession company can also get a court order which you will have to honor or face the law. Applying force to keep a car is usually ill-advised because you may end up in a situation that puts you and your family in harm’s way.

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