In Arkansas, lenders are given certain rights to ensure they continue to receive payments. One major right lenders are granted is the ability to take back any goods that have a loan in default, according to Credit Info Center. A loan defaults if there is a failure to make payments as agreed upon.Know More
Although lenders have the right to repossess goods with a loan in default, there are rules that must be followed. Repossession companies are allowed to trespass on property, but they are not allowed to enter any closed structure such as a garage or shed. The repossession process must be peaceful, and the repossession company cannot make any loud disturbances while attempting to take the owed-upon goods, notes Credit Info Center.
In Arkansas, after the goods have been repossessed, lenders must allowed a 10-day period for loan holders to pay the amount owed. If the amount owed cannot be paid in the 10-day grace period, the lender has the right to sell the goods privately or at a public auction, explains Credit Info Center. The lender must report any surplus monies after the goods are sold and the debt is paid. If there is a balance, debtors may still be responsible for payment of that debt.Learn more about Debt Law
Vehicles in California can be repossessed after a default in the contract of just one day, including a missed payment or a lapse in car insurance, according to attorney Jay S. Fleischman. Car finance companies and a registered repossession company can take away a vehicle.Full Answer >
A statute called the Texas Business and Commerce Code Section 9.609 says a creditor can use self-help repossession but can only seize collateral if it can be done without a breach of the peace, according to Weber Law Firm, P.C. Getting a court order or filing a lawsuit are other options for creditors.Full Answer >
Debt collectors must follow the Fair Debt Collection Practices Act, the Fair Credit Reporting Act and other federal and state laws, according to the Consumer Financial Protection Bureau. The Fair Debt Collection Practices Act ensures that debt collectors do not coerce debtors with unfair or deceptive collection methods.Full Answer >
Debt collection laws vary by state, according to Nolo. Some states, such as Virginia, Maryland, Georgia and Iowa, have fair debt collection laws, while others do not. Regardless of the state laws, all third-party collectors are controlled by the Fair Debt Collection Practices Act, or FDCPA.Full Answer >