When you borrow money to buy a car or truck, the lender can take your vehicle back
if you miss a payment or in some other way violate the contract. You should also be
aware that the lender:
- Can repossess with cause without advance notice;
- Can insist you pay off the entire loan balance in order to get the repossessed
vehicle back;
- Can sell the vehicle at auction;
- Might be able to sue you for the difference between the vehicle's auction price
and what you owe
- Cannot break into your home or physically threaten someone while taking
the vehicle
If you know you're going to be late with a payment, talk to the lender to try to
work things out. If you and the lender reach an agreement, be sure you get the
agreement in writing. Contact your local consumer protection office to
find out whether your state gives you any additional rights.
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