Chances are your family relies on your vehicle for everything— including getting to work, the kids to school, shopping, groceries or football practice. But if you are ever late with your payment on your loan or in many states, if you don’t have suitable auto insurance, your vehicle could be taken from you. This could be true with companies such as loans Fort Myers located in Florida better known as a car auto title loan company. Be sure before you sign on the dotted line.

Financing or leasing

When financing or leasing a car, your lesser or creditor has rights that are significant and end only when you have paid the loan off or requirements. These rights are usually set up by the agreement you signed and the law of the state. For example, if you don’t make your payments on your car in a “timely manner”, the creditor might have the right to “repossess” — ­or take back your car without ever going through a court or without even warning you. Your creditor also might be able to sell your contract to a 3rd party, called an assignee, and that assignee has the exact same rights to take the car as the first creditor.


The Federal Trade Commission, the nation’s consumer protection group, wants you to have the knowledge of your creditor’s rights that may be limited. Some states enforce rules about how a creditor can repossess the car and then turn around and sell it to eradicate or reduce what you owe them. Creditors that don’t follow these rules can lose other rights against you, or even must pay you damages.

Seizing your car

In most states, the creditor can take your car as soon as you default on your loan or lease. The contract needs to state or define “constitutes a default” but failing to make a payment “time” is a typical example.


Once you have gone into default, the laws of many states allow the creditor to repo your car any time, with no notice, and to come on your property to do so. But when taking the vehicle, your creditor can not cause a “breach of the peace.” In most states, this means using force, threatening of force, or even removes your car from a garage that is closed with no permission from you.

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