- Repossession
Repossession is generally used to refer to a
financial institution taking back an object that was either used as collateral or rented or leased in a transaction. Note that repossession is a "self-help" type of action in which the party havingright of ownership of the property in question takes the property back from the party havingright of possession without invoking court proceedings.This is usually done in accordance with a purchase contract or credit contract, in which the consumer agrees that the seller (the "
lienholder ") may repossess the object if the signers are past the grace period (generally for prime lenders the critical number is 30 days late making an installment payment but can vary based on how many payments have already been made, the length of the business relationship, reason why past due, etc.). Contracts that authorize repossession also usually specify additional fines that the consumer must pay to the seller, ostensibly to cover the seller's costs of the repossession and of depreciated value of the object, as the seller is now in possession of a "used" object. In some places self-help repossession is not permitted; the lienholder is required to go to court to obtain an order ofreplevin . However, in some states, repossession is mandatory and suits of replevin are not permitted.Fact|date=May 2008If a lender finds itself in the situation of needing to repossess property while the borrower attempts to avoid this, the dealer may contract the work of repossession out to a repossession agent
A provision of law, requires when repossession takes place, the lienholder has a "nondelegatable" obligation not to cause a "Breach of the Peace"(which is synonomous with disturbing the peace) in performing the repossession or the repossession will be reversed, and the party ordering the repossession will be liable for damages (or the lienholder will be held responsible. This requirement not to breach the peace includes even if the breach is caused by, say, the debtor objecting to the repossession or resists the repossession. In the court case of "MBank El Paso v. Sanchez", 836 S.W.2d 151, where a repossession agent towed away a car even after the loanee locked herself in it.The court decided that this was an unlawful breach of the peace and declared the repossession invalid. The debtor was also awarded $1,200,000 in damages from the bank.
External links
* [http://www.avoidhomerepossession.co.uk/ Free Online UK Advice Bureau]
* [http://www.citizensadvice.org.uk UK Citizens Advice Bureau]
* [http://www.ftc.gov/bcp/edu/pubs/consumer/autos/aut14.shtm USA FTC Facts for Consumers on Vehicle Repossession]
* [http://www.consumer.org.nz/topic.asp?category=Legal%20Rights&subcategory=Credit&docid=243&topic=Repossession&title=Your%20rights&contenttype=summary&bhcp=1 New Zealand Consumer aid in dealing with Repossession]
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