South Carolina Repossession Laws: Know Your Rights
South Carolina law protects you with a 20-day Notice of Right to Cure before most repossessions. Repo companies cannot breach the peace, and you have the right to redeem your car before it sells. If you've paid 60% of your loan, you can force a sale within 90 days to potentially recover surplus funds.
Get Payment Plan HelpRepossession happens when your lender takes back your car after you default. South Carolina has specific laws protecting your rights during this process. Understanding these rules can help you protect yourself and possibly keep your vehicle.
How Many Payments Can You Miss Before Repossession?
In South Carolina, lenders typically cannot repossess your car until your loan is at least 30 days in default.
Avoid Repossession With a Lower Payment Plan
Don't wait until you miss payments. Cambridge Credit Counseling can negotiate with your lender to reduce your monthly car payment and interest rate, helping you keep your vehicle.
Lower Your Payment NowYour loan contract defines what counts as default. Sometimes it starts one day after a missed payment. Default can also occur if you let your required insurance lapse.
The lender can reclaim your car because it secures the loan. Repossession helps them recover what you owe.
Will You Get Notice Before Repossession?
Most South Carolina lenders must send you a written Notice of Right to Cure first.
The notice comes in person or by mail after you’ve been in default for 10 days. You then have 20 days to catch up on missed payments. If you don’t, the lender can proceed with repossession.
Two important exceptions exist:
- Credit unions don’t have to send this notice before repossessing
- You only get one notice per loan—future defaults won’t trigger another warning
How to Prevent Repossession
The best prevention is staying current on payments. If you’re struggling, contact your lender immediately. Many offer financial hardship programs.
You can negotiate during the 20-day deadline after receiving notice. Better yet, reach out before falling behind. Remember that credit union loans and second defaults don’t require notice.
If your lender fails to send the required notice, you may challenge the repossession. Our partner Cambridge Credit Counseling can help you explore payment plan options to avoid repossession entirely.
What Repo Companies Can and Cannot Do
South Carolina repo companies can take your car if you’re in default. However, they cannot “breach the peace” while doing it.
They cannot break into your closed garage or go behind locked gates. They can repossess from your driveway, workplace parking lot, or shopping centers.
If your car sits in a locked garage, they need a court order.
Breaching the peace occurs if you catch them in the act and tell them to stop. If they continue anyway, that’s a violation. You can object verbally, but you cannot physically intervene or threaten them.
If the repo company breaches the peace, you may challenge the repossession in court.
Retrieving Personal Property
You have the right to retrieve your personal belongings. The repossession company must arrange a time for you to do so.
You cannot reclaim items that became part of the car. For example, an installed car stereo stays with the vehicle. You don’t need to sign a liability release when collecting your things.
If the repo company won’t let you retrieve your property, contact the lender directly. The lender doesn’t want liability for the repossession agent’s actions.
What Happens After Your Car Gets Repossessed
The lender must send you two additional notices after repossession. You’ll receive a notice of your right to redeem and a notice about their plans for the vehicle. These may come in one combined letter.
Your Right to Redeem
Redemption means you can get your car back by paying the full loan balance. You must redeem before the lender sells the vehicle.
The lender might return your car if you pay enough to catch up plus collection costs. However, they’re not required to accept partial payment.
How the Auction Process Works
The lender must state whether they’ll sell your car or keep it as debt satisfaction.
If they plan to sell, the notice explains whether it’s a private sale or public auction. For public auctions, you’ll receive the date, time, and location.
For private sales, the notice states when the vehicle becomes available for sale. You should receive these notices at least 10 days before the sale.
Commercially Reasonable Sale Requirements
South Carolina’s Uniform Commercial Code requires all sales to be commercially reasonable. The sale meets this standard if:
- It follows usual practices for selling repossessed vehicles
- The price reflects competitive values for similar vehicles
- It conforms to reasonable commercial practices among lenders
A commercially reasonable sale matters because it determines whether you’ll owe a deficiency or receive surplus money.
If you’ve paid 60% of the original loan amount, you can force the lender to sell within 90 days. Since you’ve paid so much, the sale likely produces a surplus. You have the right to that money.
Will You Still Owe Money After Repossession?
When your car sells, the proceeds first cover the lender’s repossession costs. These include towing, storage, and auction preparation. Remaining funds apply to your loan balance.
If the sale doesn’t cover what you owe plus costs, you’re responsible for the difference. This deficiency balance is common if you owed more than the car’s value.
If you know repossession is coming, consider voluntarily returning the vehicle. Voluntary surrender eliminates repossession costs, reducing your deficiency.
Sometimes the sale brings more than enough to cover everything. If that happens, the lender must return the surplus to you.
Getting Your Car Back After Repossession
In South Carolina, you can redeem your vehicle before it sells. With public auctions, you have about 10 days.
Private sales give you more time since the car only hits the lot after 10 days. It won’t likely sell immediately. Redemption requires paying the entire loan amount plus collection and repossession costs.
Another option is attending the auto auction yourself. You can bring bidders with you. Maybe a family member or friend will buy it and let you make payments to them.
Filing bankruptcy can also get your vehicle back. You must file before the sale occurs. A Chapter 13 bankruptcy case might restructure your car loan with more affordable payments. Our partner Cambridge Credit Counseling can help you explore debt management options before considering bankruptcy.