Car Repossessed in Virginia? Know Your Rights

You walk outside. Your car is gone.

Maybe you were behind on payments. Maybe you were not. Either way, this is scary. Lots of people think the lender can do whatever it wants once you miss a payment.

That is not true. In Virginia, the lender has to follow rules. When they break the rules, the repossession is wrongful. You may not owe them a penny. You may even be owed money.

Here is what you need to know.

Can they really take my car without warning?

Usually, yes. In Virginia, once you are behind on your loan, the lender can take the car without telling you first. They do not need a judge's permission.

But there are limits:

• If your loan papers promise a warning first, they have to give you one.
• If you were not actually behind, taking the car was wrong. This happens when a lender loses a payment, refuses a payment, or takes the car after agreeing to give you more time.
• If you are in the military, extra protections may apply.

What is the repo man NOT allowed to do?

This is the most important rule. The repo man cannot "breach the peace." In plain words, they cannot cause a scene or force their way in.

They are not allowed to:

• Keep going after you clearly tell them to stop
• Push, threaten, or scare you
• Break a lock, cut a chain, or open a closed garage
• Cut, break, or climb over a locked gate or fence
• Come inside your home
• Pretend to be the police or use police to scare you

If you say "Stop, you can't take that," and they take it anyway, they broke the rules. Say it early. Say it before they have the car hooked up. Once the car is on the truck and moving, a court may say you spoke up too late.

You do not have to fight them. Do not fight them. Just say no, and remember what happened. That alone can be enough to make the repossession wrongful.

One more thing. The repo company can be on the hook under federal law too, not just the lender. That is true even if it took your car when you were not actually behind.

Can they take it from my driveway?

Usually, yes, if the driveway is open. A car parked on the street or in a parking lot is fair game too.

What they cannot do is break in to get it. No cutting locks. No opening garage doors. No climbing or cutting through locked fences.

What about my stuff inside the car?

Your things are yours. The lender only has a right to the car, not your child's car seat, your tools, your phone, or your papers.

They must give your things back. They should not charge you a fee to get them back, and if they do, tell us. If they refuse or say your stuff is "lost," that is another rule broken. Ask for your things in writing right away, and keep a copy.

Do they have to tell me before they sell the car?

Yes. Before the lender sells your car, they must send you a written notice. It has to say:

• A description of the car
• How it will be sold: a public auction or a private sale
• When and where a public auction will happen, or the date after which a private sale can happen
• Whether you will owe money if the car sells for less than you owe
• A phone number to find out how much you need to pay to get the car back
• That you can ask for a full list of what you owe

If any one of these is missing, the notice is no good. They should send it at least 10 days before the sale. Many lenders get this notice wrong or never send it at all. That is one of the most common mistakes we see, and it can wipe out what you owe.

Can I get my car back?

Yes, if you act before it is sold. This is called "redeeming" the car. You have to pay the full loan balance plus their towing and storage costs, and sometimes their lawyer fees if your contract allows it. Just catching up the missed payments is not enough unless your lender agrees to it.

The notice of sale must give you a phone number to find out the exact amount. Call it and write the number down.

Some lenders will let you catch up and keep paying. Virginia law does not force them to, but it never hurts to ask.

What if they sell my car for way too little?

The lender has to sell the car in a fair way. A properly advertised auction is usually fine. Selling it to a buddy for half price, or letting it sit and rot for months, is not.

Here is a mistake we see a lot. The notice says "public sale," but the car goes to a dealer-only auction that the public cannot attend. That is not a public sale. That mistake can help you.

If the sale was unfair, the lender may lose the right to come after you for the rest of the loan.

What is a "deficiency" and do I have to pay it?

After the sale, the lender takes the money and puts it toward your loan. If there is money left over, they owe it to you. If the car sold for less than you owe, the leftover debt is called a deficiency. The lender may try to sue you for it.

Here is the good news. In Virginia, if the lender broke the rules, the law assumes the car would have sold for enough to cover the whole loan. That can wipe out the deficiency completely. Once you challenge the repossession or the sale in court, the lender has to prove it did everything right. If it cannot, you may owe nothing.

So never ignore a letter or lawsuit about a deficiency. Fighting back is often how you win.

What can I get if the repo was wrongful?

Depending on what went wrong, you may get one or more of these:

• Money for your losses. The value of your car, damage to it, missed work, and the cost of getting another ride.
• A set payment even if you cannot show a loss. For car loans, Virginia law lets you collect at least the finance charge plus 10% of the car's cash price (or the amount you borrowed) when the lender breaks the rules. On a $25,000 car with $6,000 in finance charges, that is $8,500. You can collect this once per loan.
• The deficiency wiped out. You may owe nothing more on the loan. (Virginia law usually makes you choose between this and money for losses tied to the notice or sale. Your lawyer will pick the one worth more.)
• Money for taking or damaging your things.
• A fix to your credit report if the lender reported the wrong information.

What should I do right now?

1. Write down what happened. The date, the time, what the repo man said, and whether you told him to stop. Save any camera or doorbell video.
2. Ask for your things back in writing. Keep a copy.
3. Save every letter. Especially the notice of sale. Keep the envelope so we can see when it was mailed.
4. Ask the lender in writing to explain the numbers. They have to answer within 14 days.
5. Do not ignore a lawsuit. If you do nothing, the lender wins by default and can take money from your paycheck.
6. Call Johnson Consumer Law. We will look at your case for free.

We can help

Missing a payment does not mean you gave up your rights. If your car was taken over your objection, from a locked place, without the right notice, or sold for far too little, you may have a case.

Johnson Consumer Law fights for Virginia car owners. Your case review is free, and many of these cases cost you nothing unless we win.

Call Johnson Consumer Law today or fill out our short form. Let's find out if the lender broke the rules.

This page is general information, not legal advice. Every case is different. Talk to a Virginia lawyer about your situation.