What’s a Car Title Loan? When Can the Lender Repo it?
So, the question is, can you repossess the car, truck, boat, motorcycle, RV, boat… when your borrower has failed to make their timely payment to you?
Answer? It depends. You must check with your state or province department of banking, department of financial institutions… whatever the appropriate regulator is for your geographic area.
For example, in California where we have store-fronts and offer Inerner loans, we can repo the collateral after the first missed payment.
Here’s the California law from the California Department of Business Oversight website:
CAN A CALIFORNIA FINANCE LENDER REPOSSESS A VEHICLE AFTER ONE MISSED PAYMENT?
“The Finance Lenders Law does not prohibit a lender from repossessing a vehicle after a single missed payment. To determine whether the repossession of a vehicle is permissible under your loan, refer to the original loan/contract documents that you signed when the financing was obtained. In most cases, lenders are within their rights to repossess a vehicle when a payment is not made.”
What is a car title loan? Here’s the long-winded answer: What is a car title loan.