| FREQUENTLY ASKED QUESTIONS: REPOSSESSION OF AN AUTOMOBILE |
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The Law Library Staff prepares "Frequently Asked Questions" for the convenience of our users to provide access to a variety of sources addressing particular points of law. These are general legal information sources, and are not to be construed as a substitute for personal legal advice from an attorney. Please seek legal counsel to help you determine the applicability of any of the information in these resources to your specific situation. The Cleveland Law Library makes no recommendation as to whether you should purchase any services offered by the websites contained in this FAQ. |
When repossessing an automobile, the creditor is subject to the requirements set out in the Uniform Commercial Code, Ohio Revised Code Sections 1309.601 to 1309.709. See especially:
R.C. 1309.609: A secured creditor may take possession of an automobile or other loan collateral without a court proceeding if it acts without breach of the peace.
R.C. 1309.610: The secured creditor can sell or otherwise dispose the automobile, if the disposal is performed in a commercially reasonable manner.
R.C. 1309.611, 1309.612, 1309.614: After the debtor defaults on the loan, and before the car is sold, the creditor must notify the debtor that it intends to sell or otherwise dispose of the car.
R.C. 1309.624: The debtor may waive notice.
R.C. 1309.615, 1309.616: Discusses what happens if the amount received from the sale of the auto is more or less than the amount of the debt.
R.C. 1309.623: A debtor can get the automobile back before the creditor disposes of it or enters into a contract for its disposition, if the debtor pays off the loan plus reasonable expenses and attorney's fees.
The above statutes were recently enacted and went into effect on June 21, 2001. For a legislative service commission analysis of the statute enacting these changes See: LSC Analysis: 124 Senate Bill 74 starting at page 82.
"Whatever method is used to dispose of a repossessed car, a creditor (generally) may not keep or sell any personal property found inside. (This does not include most improvements made to the car itself, such as the addition of a stereo player or luggage rack.) Your creditor also may be required to use reasonable care to prevent others from removing your property from the repossessed car. If you find that your creditor cannot account for valuable articles left in your car, you may wish to speak with an attorney about your right to compensation."
Federal Trade Commission Fast Facts Pamphlet.
ABA Article: Debt: See Page 32, "What Can Happen to Me If I Don't Pay a Debt?"
Ohio State Bar Article: Ohio's Credit Laws: "What If I Can't Make the Payments?"
See: "Ohio Consumer Law" by the Legal Aid Society of Cleveland/Ohio State Legal Services Association. Baldwin's Ohio Handbook Series. West's Publishing, 2001.
Created on:
May 21, 1999 -
