What is Vehicle Repossession?
Vehicle repossession is a legal process that occurs when a borrower defaults on their auto loan payments. The lender, or a repossession agency on their behalf, takes back the vehicle to recover their financial loss. Lenders may seize your vehicle without providing you any notice. Depending on your financing agreement, they may initiate repossession after just one missed payment. This means they can tow your vehicle without needing to involve the courts or warn you in advance.
Vehicle Repossession in Illinois
In Illinois, the repossession of vehicles is governed by the Uniform Commercial Code (UCC) and specific Illinois regulations. A secured party has the right to repossess a vehicle upon the debtor’s default, provided the repossession can be accomplished without breaching the peace. A breach of the peace is a critical consideration in vehicle repossession. It is defined as conduct that incites or is likely to incite immediate public turbulence or leads to an immediate loss of public order and tranquility.
If a breach of the peace occurs during repossession, the lienholder must stop and seek judicial remedies. It is important that any repossession is conducted in a manner that avoids conflict and adheres to legal standards.
Notice requirements are also essential. Under the UCC, reasonable notification must be sent to the debtor. Failure to provide proper notice can result in the repossession being deemed wrongful.
Vehicle repossession in Illinois must be conducted without breaching the peace, with proper notice given to the debtor, and in compliance with both the UCC and state-specific regulations. Failure to adhere to these requirements can result in legal challenges and potential liability for wrongful repossession.
The Role of Towing Companies in Vehicle Repossession
If you fail to make your car loan payments, your lender has the authority to take back your vehicle. They typically hire towing companies to carry out the repossession. Here are key details regarding the role of towing companies in this process:
Contracting with Any Towing Company
Your lender is authorized to work with any towing company for the repossession of your vehicle. This means the towing company responsible for taking your car may not necessarily be local and could be from out of state. However, it is very likely that the towing service will be located in your area.
Storage of Repossessed Vehicles
After a repossession, the towing company may decide whether to keep your car on their lot. The actual storage location can differ based on the terms agreed upon by your lender.
Vehicle Repossession Expertise
At FS CORPS, based in Illinois, our attorneys specialize in vehicle repossession matters. We understand the complexities of a vehicle repossession. With in-depth knowledge of vehicle repossession laws, we provide aggressive representation to protect your rights and achieve the best possible outcome.
Recent Vehicle Repossession Cases
November 2024
In AmeriCredit v. Bell, the Missouri court analyzed six alleged UCC Article 9 violations in a repossession lawsuit, clarifying notice rules.
October 2024
CFPB’s 2024 report reveals misconduct in auto finance market, reporting $1.616 trillion in loan debt and wrongful or improper repossessions.
October 2024
The Gonzalez v. VJ Wood case highlights whether a verbal ‘No’ three times is enough to establish a breach of peace in vehicle repossession.
September 2024
Learn how the Shue v. JMAC case defined “breach of peace” in vehicle repossession when an owner was inside the vehicle during towing.