Auto finance companies are allowed to privately repossess your car if you default on your auto loan.  And, with the economy in the dumps, auto repossessions are on the rise:

Car repossessions nationally are expected to hit 2 million this year, an 11 percent jump over 2008, said Tom Kontos, a chief economist at Adesa, a national vehicle auctioneer based near Indianapolis. About 1.5 million vehicles are repossessed during a typical year, he said.

State law governs private repossessions and puts important safeguards in place for consumers.  Some of these safeguards include making sure a lender:

• Only repossesses upon the borrower's default; 
• Does not accelerate a loan balance (make the total amount due at once)  in bad faith;
• Repossesses without "breaching the peace", that is, without violence or disturbance;
• Provides to the borrower a proper notice of repossession and sale of the vehicle; 
• Provides the borrower with notice that he/she has the right to reinstate the contract by paying past due amounts (if the contract provides for this right);
• Sells the vehicle in a commercially reasonable manner in order to maximize the sale price; and
• Provides the borrower with a calculation of a deficiency (amount borrower still owes) or surplus (amount owed to the borrower) as a result of the post-repo sale.

If the finance company or its repo man do not comply with these laws, consumers may bring lawsuits against the lender for damages - including mandatory statutory damages.  

Our firm has brought lawsuits against sub-prime auto lenders and national banks alike for illegal repossession tactics.  If the Repo Man has paid you a visit - contact us, we may be able to help.