The amount you must pay and what steps you need to take to make the loan current. The method of payment (cash or check) by which you can redeem or retire the loan to get your vehicle back and The due date by which the loan can be repaid The amount of the outstanding loan balance, which includes all additional fees and charges that have been incurred Notice of Default and Right of Redemption/Reinstatement - Your auto lender must provide you with a written notice of your right of redemption and/or right of reinstatement. Required Notices After RepossessionĪfter repossessing your vehicle, auto lenders are required to send you a notice of default and right of redemption/reinstatement, as well as a notice of sale. Some lenders may still make a courtesy phone call or send an email, but they are not legally required to do so unless the terms of the car loan specify otherwise.
The laws in cities such as Columbus, Ohio, offer no protection to borrowers whose loan contracts don’t include a grace period. They can simply come and take the car the day after the payment is due. Unfortunately, auto lenders in Ohio are not required to send you a written notice prior to repossessing your vehicle if you haven’t made your car payments on time. Required Notices for Car Repossession in Ohio That’s why it’s important to contact your auto loan provider immediately if you’re going to have trouble making your payments.
But if the loan agreement makes no specific allowances for late payments, then the lender can repossess your vehicle the day after your payment is due. Of course, many lenders in Ohio do allow borrowers to go into default for at least a short grace period before they will repossess your vehicle. The bottom line is, if you are using your car as collateral for an auto loan, then your lender can take the vehicle back immediately if you are late with your payment. This is unless you contact your lender and make alternative arrangements for repayment beforehand. If your loan contract doesn’t specify terms like this, the lender has the legal right to repossess your vehicle the day after your payment is due. But your loan contract may give you more leeway and outline the actions the lender can take when you go into default.įor example, your loan contract may state that if your payment is more than five days late, you’ll be charged a late fee and additional late fees will be applied for every day you are late after that. In fact, Ohio’s auto repossession law says that the vehicle lender or secured party can repossess your vehicle if you are just one day late with your payment. These regulations don’t give borrowers very much leeway when it comes to delinquent payments. Ohio’s car repossession laws and regulations are all laid out in detail in Section 1309 of the Ohio Revised Code. Here we will examine Ohio’s laws and what you need to know if you live in Ohio and can’t make your payment or have already experienced vehicle repossession. Vehicle repossession laws are largely the same in all states, but some details governing borrowers’ and lenders’ rights differ from one state to another.
If you take out a loan to buy a vehicle and you become unable to make the payments, then you run the risk of having your vehicle repossessed.
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