If you've fallen behind on car loan payments and fear that the lender might repossess the vehicle, should you hide your car from the repo man?
By Stephanie Lane, Attorney · Case Western Reserve University School of Law
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I'm behind on my car loan payments. I think the lender might repossess the car. I'm getting a tax refund soon, which should be more than enough to pay off the car loan. I want to prevent my car from being repossessed so that I don't have to pay the extra fees. What happens if I try to hide the car from the repossession agent while I'm waiting for my tax refund to arrive?
Whether you can hide or lock up the car to buy yourself time to pay off the loan depends on where you live. In most states, taking these actions won't violate any laws, unless you do it with the intent to defraud the bank. For example, if you normally keep the car locked up in your garage, you can continue to do so. In some states, though, deliberately hiding a car from the repossession company is a crime.
Will Hiding the Car Work?
In most states, a car loan creditor is permitted to come onto your property and take your car so long as it doesn't have to cut chains, break locks, or damage property in the process.
So, if you "hide" your car by parking it behind your house or garage, or in the woods on your property, the creditor might still be able to find it and repossess it. Similarly, if you "hide" your car by keeping the car in a neighbor's driveway or at your place of employment, the repossession company can still legally get it, assuming they know where it is. And in some states, doing this might be illegal.
But if you keep the car locked in a garage or behind a chained gate, the creditor can't repossess the car because it would be breaching the peace (damaging property). Again, whether you're allowed to do this depends on whether you trying to defraud the car loan lender.
The Creditor Can Get Your Car Through Replevin
But if you make it hard for the repo agent to get it, then the creditor may use another method to get the car back, called "replevin." Replevin can be just as costly as a repo, if not more so.
With replevin, the car lender files a lawsuit seeking an order from the court requiring you to give the car back. If you fail to abide by the court order, you might be subject to both civil and criminal penalties. The creditor can also get a money judgment against you, usually for the balance owed on the loan or lease, along with charges and costs.
What Can You Do to Avoid Repossession or Replevin?
Rather than dodge your creditor, you might be better off talking to it about your situation and deferring things until your refund comes. Creditors are often willing to work things out with a borrower, especially if that means they'll get paid soon. It doesn't hurt to ask your creditor for a break. You could save yourself a big headache, not to mention a lot of money.
But if you deliberately hide your car from the repo man with no intention of paying off debt in order to prevent repossession, you could get yourself into some major legal trouble. For example, hiding your car from repo men could force lenders to seize your car through replevin
replevin
Replevin (/rɪˈplɛvɪn/) or claim and delivery (sometimes called revendication) is a legal remedy which enables a person to recover personal property taken wrongfully or unlawfully, and to obtain compensation for resulting losses.
You should let the police know that you have objected to the repossession and asked the repo men to leave. At that point, the police should instruct the agents to leave the scene because they are trespassing.
Repo companies and the repo man heavily rely on sophisticated technology to track vehicles. License plate recognition (LPR) systems, equipped with cameras and database access, scan license plates on public roads, parking lots, and other locations.
If the recovery company can't find your car, they contact the lender and let them know they are unsuccessful. Next, your lender is likely to take legal action.Your auto lender can take you to court and get an order that forces you to return the car.
It's important to keep in mind that the repo man will likely not give up on repossessing your car. We're talking about a trained professional whose livelihood depends on getting their hands on your vehicle. So they are not going to be easy to avoid.
By law, repo men are not allowed to issue threats or utilize force. While it may be tempting to prod him/her into losing their cool, there may be other consequences later in your case.
In the Field Investigator position, you will drive a company-issued car in designated areas and locate vehicles that are subject to repossession. You will directly interact with our recovery agents…
A repossession agency with authorization from the legal owner will attempt to take your vehicle for the legal owner. If you hide the vehicle to avoid repossession, you may give up your right to continue with the same contract with the legal owner.
Saying something as simple as “you may not take the car” generally suffices under laws for vehicle repos as an “unequivocal protest” and will require the repo man to stop the repo process.
There are a few methods they use to locate delinquent cars, including tracking devices, public records, databases and sometimes even good old-fashioned detective work. Many times, lenders will install GPS tracking devices in vehicles to help repossession agents quickly recover delinquent automobiles.
It's not unheard of for repo agents to travel up and down the streets within a few blocks of your home or job looking for your vehicle. They know that borrowers often ditch their cars a few blocks away and walk home. Repo agents may even look at a relative's home for your vehicle.
WHAT IF THE LENDER DOESN'T REPOSSESS YOUR CAR? This means that: You are stuck with it – if the lender doesn't come to pick up the car. You can't sell it – because the lender still has the lien, and selling it would be committing a theft.
The lender typically won't release the lien or car title (if it holds it) until the loan is paid in full. In contrast, if your lender charges off an unsecured auto loan and doesn't repossess your vehicle, you likely will be able to sell it or trade it in, since your lender has no security interest in your vehicle.
These terms are stated in the loan agreement, or Retail Installment Sales Contract, that is signed at the time of purchase. Repossessions can occur at any time of day or night — while at the supermarket, taking the kids to school, at a relative's home for holiday dinner, or while asleep.
In the U.S. the real answer is, it depends on state law. If there is no law specifically against it in whatever state the repo is taking place in, then yes, he could because it's not illegal. The repo company would be liable for any damage that might occur.
It is best for you to proactively address the situation and work with your lender to avoid repossession. But, if you have no other options, remember this is not the end of the world, and there are ways to rebuild your credit.
The repo man can't break into a locked garage to take your car. Learn more. Creditors are allowed to engage in self-help to repossess cars, but that freedom isn't without limits. If a creditor risks "breaching the peace," it isn't allowed to repossess the vehicle.
So, a repossessor may enter a parking lot, garage, or gated community that's open to the public, even if privately owned, to repossess a vehicle. Also, a repossession agent can repossess your vehicle whether or not you're present.
There is absolutely no law prohibiting repo companies from lying to people to locate and repossess vehicles. The law only says they can repossess if they can do so peaceably. The repo companies lie all of the time to make sure a vehicle is at a particular location to repossess it.
Some car dealers install GPS tracking devices on cars they sell. These trackers show the repo man exactly where your car is at all times. This means that if you miss one payment, the repo man might be able to track you down immediately to repossess your car.
Some repossession agents work for an hourly wage, while others receive a set payment for each job they complete. The average annual salary for a repossession agent is $62,841 per year , but agents have the potential to earn more money when recovering high-end items, such as airplanes.
Bail recovery – Skip tracing is commonly used by bail bondsmen to locate individuals who have skipped bail and failed to appear in court. Asset repossession – Skip tracing can be essential in the process of recovering assets, especially when dealing with individuals who may have concealed their financial information.
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