Repossession

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 having right of ownership of the property in question takes the property back from the party having right 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 of replevin. However, in some states, repossession is mandatory and suits of replevin are not permitted.Fact|date=May 2008

If 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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Look at other dictionaries:

  • repossession — re·pos·ses·sion /ˌrē pə ze shən/ n: the act or an instance of repossessing Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. repossession …   Law dictionary

  • repossession — To recover goods sold on credit when a person fails to pay for those goods. Rules respecting repossession vary from state to state (SA Bankruptcy.com) United Glossary of Bankruptcy Terms 2012 …   Glossary of Bankruptcy

  • Repossession — Re pos*ses sion (r? p?z z?sh ?n or p?s s?sh ?n), n. The act or the state of possessing again. [1913 Webster] …   The Collaborative International Dictionary of English

  • repossession — Taking physical possession of personal property collateral pledged to secure a defaulted loan. American Banker Glossary * * * repossession re‧pos‧ses‧sion [ˌriːpəˈzeʆn] noun [countable, uncountable] FINANCE PROPERTY the act of repossessing… …   Financial and business terms

  • repossession — [[t]ri͟ːpəze̱ʃ(ə)n[/t]] repossessions 1) N VAR The repossession of someone s house is the act of repossessing it. ...the problem of home repossessions. ...families facing repossession of their homes. 2) N COUNT You can refer to a house or car… …   English dictionary

  • repossession — To take back as when a seller or bank or finance company repossesses or takes back an item if the buyer misses an installment payment. To recover goods sold on credit or in installments when the buyer fails to pay for them. U.C.C. No. 9 503. The… …   Black's law dictionary

  • repossession — repossess ► VERB ▪ retake possession of (something) when a buyer defaults on payments. DERIVATIVES repossession noun repossessor noun …   English terms dictionary

  • Repossession Records — is an independent record label based in Pacific Palisades, California. Repossession is run by Gary Ashley, who worked for MCA. Music Repossession represents such bands as SLUNT, The Fight, alston, Dry Kill Logic and Elliot Minor. Links… …   Wikipedia

  • repossession order — UK US noun [C] PROPERTY, LAW ► a legal document that allows a bank or other company to repossess someone s house, car, etc.: »Most lenders waited until payments were three to six months in arrears before seeking repossession orders. »The court… …   Financial and business terms

  • repossession order — repossession orders N COUNT If a bank or building society issues a repossession order, they officially tell someone that they are going to repossess their home. [BRIT] …   English dictionary

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