Georgia Repossession Laws: What You Need to Know in 2024
Georgia allows lenders to repossess your vehicle after just one missed payment, and they don't have to warn you beforehand. You can redeem your car before the auction sale by paying the full loan balance plus all fees, but you'll likely owe a deficiency balance even after the vehicle is sold.
Get Payment HelpRepossession happens when a lender takes back your car after you default on payments. Each state has different rules governing this process. Georgia has specific laws that protect both lenders and borrowers during repossession. Understanding these laws can help you protect your rights and make informed decisions about your vehicle.
How Many Missed Payments Before Repossession in Georgia?
Georgia law allows lenders to repossess after just one missed payment. You enter default as soon as your payment is officially late under your contract terms.
Avoid Repossession With a Payment Plan
Struggling with car payments? Credit counselors can negotiate with your lender to create a manageable payment plan before repossession happens. Act now to protect your vehicle.
Lower Your PaymentsYour loan agreement defines what counts as default. Some lenders offer grace periods or allow multiple missed payments. But once you’re in default, repossession becomes legally possible.
Most lenders don’t repossess immediately after one missed payment. Repossession is expensive and time-consuming for them. Many wait until you’re several months behind before taking action.
However, you shouldn’t rely on this delay. Lenders have the legal right to act quickly. If your car gets repossessed, you can still retrieve it before the sale. You’ll need to pay the entire loan balance plus all fees.
Will You Get Notice Before Repossession?
No. Georgia doesn’t require lenders to warn you before repossessing your vehicle. Your car can be taken without any advance notice once you’re in default.
After repossession, the lender must send written notice within 10 days. The letter explains how much you owe, including repossession fees. You’ll also learn your deadline to reclaim the vehicle.
How to Prevent Vehicle Repossession
Read your loan contract carefully to understand your rights and obligations. Know whether you have any grace period for late payments.
Contact your lender immediately if you’re struggling financially. Many lenders offer payment extensions or modified payment plans. You’ll have better options if you reach out before missing payments.
Consider working with our partner Cambridge Credit Counseling to create a manageable payment plan. Professional counselors can negotiate with lenders on your behalf.
What Repo Companies Can and Cannot Do in Georgia
Repossession companies must follow strict rules when seizing vehicles. Georgia law protects borrowers from aggressive or illegal tactics.
Legal Repossession Practices
- Repo agents can take vehicles from driveways and other open areas on your property
- They can repossess without advance warning or permission
- They can seize vehicles during routine repair shop visits
Illegal Repossession Practices
- Entering your home or locked garage without permission
- Using or threatening violence during repossession
- Breaching the peace through aggressive confrontation
- Using deceptive tactics like fake recall notices to lure you
Repo companies cannot access vehicles behind locked gates or inside closed structures. If they break these rules, you can take legal action against both the company and lender.
You also can’t breach the peace. Physically blocking repossession or threatening violence is illegal. Doing so can result in criminal charges against you.
Your Personal Property Rights
Remove personal belongings from your car if you’re at risk of repossession. Once your vehicle is taken, retrieving items becomes more complicated.
If personal property remains in your repossessed car, the notice you receive will explain retrieval procedures. Repo companies must allow you to collect your belongings. They’re required to store your items for up to 60 days.
Contact your lender directly if the repo company won’t respond or release your property.
What Happens After Repossession in Georgia
Your lender will sell your repossessed vehicle at auction. The repossession notice tells you when and where the auction occurs. You can attempt to buy back your car before the sale.
Reclaiming your vehicle requires paying the full remaining loan balance. You’ll also pay all repossession fees and related costs. You can’t just catch up on missed payments.
Understanding Deficiency Balances
The auction sale price rarely covers your full loan amount. You remain responsible for the difference between what you owed and what the car sold for. The difference is called the deficiency balance.
Georgia law requires lenders to sell repossessed vehicles in a commercially reasonable manner. They must properly advertise the auction and accept all reasonable bids.
If you have an upside-down car loan, your deficiency balance will be substantial. An upside-down loan means you owe more than the vehicle’s current value. The auction sale won’t come close to covering your debt.
Lenders must sue you and obtain a deficiency judgment to collect the remaining balance. You can defend yourself in this lawsuit by arguing the repossession was unlawful. You can also claim the lender didn’t sell your car reasonably.
The court hearing your case can provide forms for filing your answer and raising defenses.
Do You Still Owe Money After Repossession?
Yes, you’ll likely owe money even after the car is sold. You’re responsible for the deficiency balance plus all repossession costs. Repossession fees, storage charges, and auction expenses get added to what you owe.
Voluntary repossession can minimize your final balance. You voluntarily surrender the vehicle to your lender. The lender won’t hire a repo company, saving those fees. You’ll still owe the deficiency balance after the auction sale.
Getting Your Car Back After Repossession
You can redeem your vehicle anytime before the auction sale. The repossession notice explains exactly what you must pay. Georgia doesn’t set a minimum redemption period. You have until the scheduled auction date to act.
You’ll need the full loan balance plus all associated fees. Many borrowers can’t afford redemption, especially if they couldn’t make regular payments.
Resources for Georgia Repossession Laws
You can find more detailed information through these official resources:
Professional credit counseling can help you manage debt before repossession happens. Our partner Cambridge Credit Counseling offers personalized debt management plans that can help you avoid losing your vehicle.