For many consumers, having a vehicle repossessed is a stressful and traumatic event. Worries about transportation and concerns about credit ratings can make a bad situation even worse. In some cases, however, consumers have legal recourse against wrongful repossessions, and may even be able to collect damages against both the lender and repossession company. Here are some guidelines to help you determine whether you’ve been a victim of wrongful repossession.

Rules of repossession
Although a lender can usually repossess a vehicle when the borrower gets behind on payments, there are certain rules that the lending institution must follow in order to legally take possession of the vehicle from you. Failure on the part of your lender to follow these rules can result in the lending company being held liable for any damages you’ve incurred due to the wrongful repossession, including the value of the repossessed vehicle and any other costs that resulted from the company’s action.

The repossession must be performed legally
Perhaps the most important rule is that the repo agent can’t breach the peace during the repossession. This means that they can’t break into your home or enter your locked garage in order to take possession of the vehicle. During the course of the repossession, the company’s representative must not make any threats of physical violence or use force against you to regain possession of the vehicle. If the repo company, or any of its agents, break the law, you can sue them and collect damages.

The loan must be in default at the time of repossession
If your lender has repeatedly accepted late payments on your account, they usually can’t repossess your vehicle without sending you a written notice of their intent to repossess in advance.

By knowing your legal rights when a lender threatens to repossess your vehicle, you can protect yourself against wrongful repossession and even recoup damages if your rights are violated by lenders or repo companies.