Credit is an integral part of our lives. From credit cards to home financing to car financing, Floridians take credit for a variety of reasons. However, when a debtor fails to make their car repayments in time, then one of the options the financing company can take is repossessing the collateral (car) in question.
Repossession is the process of taking back the car when the owner falls behind on their loan payments. But what does the repo process look like in the Sunshine State?
Here are a couple of things you need to know about vehicle repossession in Florida:
How many payments can a car owner miss before repossession?
Legally speaking, Florida laws allow lenders to repossess a vehicle as soon as the car owner defaults on the first payment.
Sometimes, the contract may have a provision for a grace period. Within this period, the car owner can, typically, make payment without incurring late fees penalties. So it may be important to keep this in mind when considering repossession.
Do you have to notify the car owner before the repossession?
Under Florida law, the lender must give the car owner an opportunity to voluntarily surrender the car and remove their personal belongings before repossessing the car. If the car owner fails to do this, then the lender may not have to issue any further notice before repossessing the vehicle.
Can anyone enforce the repossession notice?
No. In Florida, generally, only state-licensed agents can repossess a property. The lender may have to engage the repossession agent at their own expense to execute the repossession.
Repossession is inevitable when a car owner fails to keep up with their payments. You can find out how you can protect your rights and interests while executing a repossession order.