Virginia Repossession Laws: Know Your Rights When Facing Repo
Virginia lenders can repossess your car after one missed payment, but they must provide 10 days' written notice first. You have the right to redeem your vehicle before it's sold at auction by paying the full balance plus fees. Taking immediate action and communicating with your lender can help you avoid repossession or minimize its impact.
Explore Payment PlansRepossession happens when a lender takes back your car after you default on payments. Virginia has specific laws that protect borrowers during this process. Understanding your rights can help you avoid losing your vehicle.
How Many Missed Payments Trigger Repossession in Virginia?
Your lender can legally repossess your car after just one missed payment. Most loan contracts don’t require them to wait any specific period.
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Lower My PaymentsSome contracts may specify a 90-day grace period before repossession begins. Check your loan agreement for these terms. Without such language, being even a day late could put you at risk.
In practice, most lenders wait until you’re at least 90 days behind. Repossession is expensive for them. Still, if you’re months behind on payments, expect action soon.
Will You Receive Notice Before Repossession?
Virginia requires lenders to send written notice at least 10 days before repossession. The notice must clearly state your payments are past due.
The written warning must explain that you have 10 days to bring your balance current. It must also state that failure to pay may result in repossession.
If your lender skips this required notice, they can’t collect repossession or sale costs. That’s a significant legal protection for you.
After the 10-day window closes, lenders don’t need to notify you again. You might wake up one morning and find your car gone. Be proactive and communicate with your lender immediately.
How to Prevent Your Car from Being Repossessed
Contact your lender as soon as you anticipate trouble making a payment. Many lenders offer short-term solutions.
Possible options include:
- Skipping one payment without penalty
- Deferring what you owe to the end of the loan
- Moving a missed payment to your loan’s final months
- Renegotiating your contract terms
- Refinancing with a new loan for better terms
The only guaranteed way to stop repossession is bringing your account current. In Virginia, you typically need to catch up within the 10-day notice period.
If keeping up with payments isn’t realistic, consider voluntary repossession. You surrender the car to the lender instead of waiting for them to take it. While it still damages your credit, you avoid extra fees and stress. Our partner Cambridge Credit Counseling can help you explore payment plan options.
What Repossession Companies Can Do in Virginia
Virginia doesn’t require repo companies to be licensed. You may have difficulty determining if a repo agent is acting legitimately.
Never use force to prevent a repossession agent from taking your vehicle. You could face legal consequences. Even if the agent seems suspicious, don’t physically intervene.
If a repossession company uses tricks, misleading tactics, or force, contact an attorney immediately. You may have legal recourse.
Repo companies don’t need to notify you before seizing your vehicle. They can take your car from virtually any unlocked location. If your vehicle is in a locked garage, they need a court order to access it.
Getting Your Personal Property Back
You have the right to retrieve personal belongings from your repossessed car. Repo companies must return your items quickly and at no cost.
You can collect your belongings either during repossession (if you’re present) or afterward. They cannot charge you storage or retrieval fees.
Personal property includes:
- Child car seats
- Paperwork and documents
- Items from the glove box or trunk
- Removable electronics
You cannot remove permanently installed items like upgraded stereo systems or custom parts.
What Happens After Repossession
After a repo agent takes your car, you’ll have the option to redeem it. Redemption means paying the full balance you owe plus fees.
If you don’t redeem your vehicle or arrange alternative payment terms, your lender will sell it. Most vehicles are sold at auction.
Virginia law requires lenders to provide at least 15 days’ written notice before the sale. The notice must include the sale date, time, and total redemption amount.
Once sold, the certificate of title transfers to the new owner. Your name will no longer appear on the title.
Do You Still Owe Money After Repossession?
Repossession doesn’t erase your auto loan debt. You remain responsible for the balance.
When your car sells at auction, the proceeds apply to your total balance. The balance includes the loan amount plus all fees.
If the vehicle sells for more than you owe, Virginia law requires the surplus be returned to you. If it sells for less, you owe the difference. The remaining balance is called a deficiency balance.
You must repay your deficiency balance either as a lump sum or through installment payments. Failing to pay may result in a deficiency judgment against you. The judgment will damage your credit score and could lead to wage garnishment.
Can You Get Your Car Back After Repossession?
Virginia law allows you to redeem your vehicle by paying the full balance owed. The balance typically includes the loan amount, repossession fees, late fees, and other charges.
You can redeem your car anytime before it’s sold at auction. The 15-day notice gives you time to gather funds.
You can also try negotiating with your lender. Some may allow you to renegotiate loan terms or reenter your existing loan. You’d need to pay your overdue balance plus repossession fees.
Some lenders hesitate to work with borrowers after repossession. Others are more flexible. Exploring your options is worth the effort if you need your vehicle.
Where to Find Help with Virginia Repossession Laws
If you need legal advice about vehicle repossession, speak with an attorney. You can also contact a local legal aid service office.
Virginia has nine legal aid programs available. Visit VALegalAid.org to connect with the Virginia Poverty Law Center. They can help you locate your local legal aid service center and determine eligibility for free or low-cost services.
If you’re struggling with multiple debts and car payments, our partner Cambridge Credit Counseling can help you create a manageable debt management plan. Taking action now protects your vehicle and your financial future.