Understanding Car Repossession in Florida: The Basics For many borrowers, the threat of car repossession is one that they fear when an auto loan payment goes unpaid. This is due to Florida Statute § 537.car repossession Florida (ad)012, the primary statute that governs how a lender can repossess your vehicle in (and if) you default on loan repayments. The following are some essential points to know about car repossession in Florida;
Timeline for Repossession
DefaultLenders can legally repossess a vehicle in Florida when the borrower is even 1 day late making their payment:So, What? This would result in a single missed payment resulting to the car being repossessed13.
The Repossession Process
The repossession has to be performed by a licensed recovery agent, and part of the rules are procedures for how it can take place under what terms. For example, repossessing any vehicles that are in locked or gated areas is impermissible and agents must not breach the peace during this process14. Further, borrowers are entitled to anything in the vehicle that belongs to them: they can remove these items before the car is sold3.
Options After Repossession
Even after a repossession, the borrower still has options. They might have the option of using a home equity loan, otherwise must pay off what is owed on their vehicle and any expenses connected with repossession for reclaiming it themselves or renegotiate with lenders to re-learn for another car if they are unable to afford paying all at once. Bankruptcy may be an option too, it will stop repossession and give more avenues to repay debt15.
This knowledge can assist Florida residents in getting through the intricate nature of car loans and repossession laws.
