The recent economic downturn has created financial difficulties for many consumers. As a result, the number of vehicle repossessions has increased in recent years. There is also evidence that a higher number of wrongful repossessions are taking place, which presents problems for consumers who may not fully understand their legal rights and consequently may fail to act when their vehicles are wrongfully repossessed. In most cases, lenders cannot repossess your vehicle unless certain conditions are met; these include:
your loan must be in default at the time of the repossession
if late payments have been repeatedly accepted, the lender must give you advance warning in writing of their intent to repossess the vehicle
Also, some actions taken by the repo company may also be illegal. For example, the repossession company can’t threaten you or your family with physical harm or use force against you. Repo companies are also forbidden from breaking into your home or locked garage or using a master or duplicate key to gain entry to a locked area. These acts are considered a breach of the peace and usually lead to a wrongful repossession .