Pennsylvania law allows lenders to repossess property in which they have a security interest if the debtor falls behind in payments, according to the Pennsylvania Legal Aid Network. For lenders to take this action, there must be a written security agreement and it must be possible to peacefully repossess the property.Know More
To be enforceable, a written security agreement must be signed by the debtor and list the specific property used as collateral, notes the Pennsylvania Legal Aid Network. This agreement must also clearly state the property is subject to repossession upon default. In addition, the creditor must be able to collect the property without violating the law. Creditors may seek relief from the courts if collateral is withheld by debtors in such a way that rightful repossession violates a law, such as trespassing.
Creditors are not required to give notice before repossession of vehicles, explains the Pennsylvania Legal Aid Network. Repossession of other personal property, including appliances and furniture, requires at least 21 days written notice prior to action. To repossess a mobile home, creditors must provide a written notice at least 30 days before seizing the property. In both cases, the debtor can bring payments current to avoid repossession.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 >
If it is inconvenient for a debtor to receive a debt collection call on Sunday, and the debtor has specifically told collection agents not to call on Sundays, then debt collectors are not legally allowed to call. Under the Fair Debt Collection Practices Act, debt collectors who call on Sunday after being advised not to can be held in violation of the law.Full Answer >
A debt collection letter should include the amount of the debt, the debtor, how the individual can dispute the debt and how he can verify the debt, according to the Consumer Financial Protection Bureau. All of the information has to be received within five days of initial contact.Full Answer >