Motor Vehicle Repossessions: Consumer Debt Advice from NCLC

When buying a car on credit, you almost always must put up the car as collateral for the loan. Sometimes consumers also use their cars as collateral for an unrelated small loan. If your car is collateral for a loan and you get behind on your payments or violate other loan terms, you risk the immediate repossession of your car. The focus of this article from the National Consumer Law Center is on motor vehicle repossession including limits on self-help repossessions, ten strategies to prevent repossessions, six steps to take after your car is repossessed, and advice on responding to the creditor’s demand for additional payment even after the repossession. (June 2018)