Are there any laws governing the process in car repos?

Question

I want to know does the car have to be a specific number of months behind? Can they come get your car after two missed payments even though you plan on making a payment before 3 months? Living in TN....

Answer 1

There are due diligence rules related to consumer loans. They can vary. Read your contract. It should have a section on default.  

Usually 60+ days past due is enough to repo. For sure 90.

Also you can figure the bank is following the rules.

OK that being said, call them tmrw and make payment arrangements.

Also tmrw mail any amount you can, say at least $25. It does show your intention to pay, and recent activity.

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Answer 2

It depends on your state. there are laws, commonly called "Right to cure" laws that tell you how long you have before a company can repo your car. In california, there is no such law however, and a repo can occur even if you are one day late!

Answer 3

Yes debt collection and repossession is regulated by the government. Once you are behind one payment, they can start the collection process. You need to contact the lender and explain your situation and hope that they will work with you.