Question Of The Day: Can I Repossess My Own Car?

A truck being towed on the highway. Photo credit: Paul O’Rear, Flickr. 

Question: I bought a truck for my husband in 2007. About 6 months later we separated and then divorced. Our divorce decree stated that he could keep the truck as long as made the payments, when the vehicle was paid for I would sign the tittle over to him.  He is no longer making the payments or paying the insurance for this vehicle. The vehicle is titled, registered and insured in my name and only my name. Can I repossess it? How do I do that?

Answer: Let’s be clear about the word “repossess.” Repossession is a technical legal term covered by all sorts of state laws, regulation requirements for companies who handle repossessions, and federal statutes administered by agencies like the Federal Trade Commission.  According to the FTC Consumer Information division, while many states allow creditors to repossess a vehicle “as soon as you default on your loan” there are consumer protections in place that that can limit where, when, and how that repo goes down.

In Massachusetts for example, the seizure law covers “secured creditors under a consumer credit transaction.” This generally means banks, credit unions, or other public consumer lenders who lent the money for the purchase of the car using the car as collateral to secure the loan.