Ohio Repossession Laws: Your Rights After Car Repo

Repossession happens when a lender takes back your car after you default. Each state has different rules governing how this process works. If you’ve fallen behind on car payments in Ohio, you need to understand your rights.

How Many Missed Payments Trigger Repossession in Ohio?

You risk repossession as soon as you default on your loan. Your loan agreement defines what counts as default. Being even one day late can technically be a default.

Stop Ohio Repossession With Bankruptcy

Filing Chapter 7 or Chapter 13 bankruptcy triggers an automatic stay that immediately stops repossession. You may be able to keep your car and eliminate deficiency balances.

Check If You Qualify

Most agreements include a grace period. You get extra time to make your payment before it’s considered late. A common grace period is 10 days from the due date.

Your lender can repossess your car if you break the loan terms. Car loans are secured debts. The vehicle itself serves as collateral that guarantees the loan. When you don’t pay, the lender has the legal right to take it back.

Does Ohio Require Notice Before Repossession?

Ohio law doesn’t require lenders to notify you before repossessing your vehicle. They can take your car without warning. Most lenders won’t repossess after just a few days. But legally, they can.

The creditor can handle repossession directly or hire a repo company. You won’t get advance notice either way.

How You Can Stop a Repossession

Contact your lender immediately if you’re struggling with payments. Many lenders will work with you to avoid repossession. They may offer modified payment plans or temporary relief.

Communication is your best tool. Don’t ignore the problem. Reach out before you miss payments, not after. If you need help with overwhelming debt, you can speak with a bankruptcy attorney for free to explore your options.

What Repo Companies Can and Cannot Do in Ohio

Repo companies can take your car once you’re in default. They have broad authority, but there are limits.

Where They Can Take Your Car

Repo agents can repossess your vehicle from:

Public parking lots
Your driveway
Open carports

Where They Cannot Take Your Car

Repo companies cannot take your vehicle from:

Closed garages
Behind locked gates

Taking a car from these spaces counts as breaching the peace. Ohio law prohibits repo agents from using threats or violence. If you tell them to stop, they must stop.

Don’t use force to prevent repossession. You could get hurt or face legal problems yourself.

Instead, document what happens. Take photos or videos if possible. You can use this evidence in court later if needed.

Getting Your Personal Belongings Back

Remove personal items before repossession if possible. If your car gets taken with belongings inside, you have the right to retrieve them.

Call the repo company to arrange a pickup time. Keep in mind this only applies to items you placed in the car. It doesn’t include installed parts or accessories.

For example, you can’t remove a stereo system you had installed. If you have trouble getting your property back, contact your lender.

What Happens After Ohio Repossession

Ohio law requires lenders to send you notice before selling your repossessed vehicle. The rules depend on who financed your car.

The Ohio Retail Installment Sale Act (RISA) covers most dealer financing. Ohio’s Uniform Commercial Code (UCC) governs bank and credit union financing.

Repossessions Under RISA

If your lender isn’t a bank or credit union, RISA applies. Lenders must send notice within five business days after repossession.

The notice explains your default and lists what you must pay to cure it. Curing means fixing the problem by catching up on payments.

You’ll also receive notice of how they’ll sell the vehicle. They must send this at least 10 days before the sale. These two notices can be combined or sent separately.

The sale notice must include:

Your name, the lender’s name, and vehicle details
How the vehicle will be sold (auction method)
Date, time, place, and minimum sale price
Information about potential deficiency balances
A phone number for questions about redemption or reinstatement

Under RISA, vehicles can only be sold at public auction. Lenders must advertise the auction in local newspapers at least 10 days beforehand.

Auction proceeds pay off your loan balance plus repossession costs. If proceeds don’t cover everything, you owe the difference. We call this a deficiency balance.

If your lender doesn’t follow these requirements, they can’t collect the deficiency from you.

Repossessions Under the UCC

Bank and credit union financing follows UCC rules. Lenders must send notice after repossession and at least 10 days before sale.

The UCC notice must include:

Your name, the lender’s name, and vehicle details
How the vehicle will be sold (auction or private sale)
Date, time, and place of the sale
Information about potential deficiency balances
A phone number for redemption information

Under the UCC, lenders can sell at public auction or private sale. Most choose public auctions.

UCC rules don’t give you the right to reinstate your loan. You can only redeem the vehicle by paying the full balance. Lenders also aren’t required to set minimum auction prices.

Do You Still Owe Money After Repossession?

Usually, yes. Sale proceeds cover repo costs first, then your loan balance. Often this isn’t enough to pay everything.

When sale proceeds don’t cover the total owed, you must pay the difference. You’ll have a deficiency balance to pay.

You can reduce this amount through voluntary repossession. If you surrender the vehicle yourself, you won’t pay repo costs.

In rare cases, sale proceeds exceed what you owe. You’re entitled to any surplus money left over.

Getting Your Car Back After Ohio Repossession

You may be able to get your car back. Your options depend on who financed it.

Reinstatement Under RISA

RISA gives you the right to cure your default. You must act within 20 days of repossession or 15 days after notice, whichever is later.

To cure the default and get your car back, you must pay:

All payments due or past due
Any unpaid late charges or deferred charges
Up to $25 for repossession costs
Two installment payments as security against future defaults

Actual repo costs usually exceed $25. The balance gets added to your loan. You’ll repay it over the remaining loan term.

You can only reinstate once per loan. If you default again, you lose this right.

Redemption Under the UCC

Bank and credit union loans follow UCC rules. You don’t have a right to reinstate. But you can redeem your vehicle.

To redeem, you must pay the entire loan balance plus all repossession costs. You must do this before the lender sells the vehicle.

The lender must send you notice at least 10 days before the sale. If you’re facing repossession and struggling with debt, speaking with a bankruptcy attorney can help you understand whether Chapter 7 or Chapter 13 might stop the process.

Ohio Resources for Repossession Help

If your vehicle has been repossessed, these organizations can provide legal advice and assistance:

Frequently Asked Questions

How many car payments can I miss before repossession in Ohio?

You can be at risk of repossession as soon as you default, which may be just one day late. Most loan agreements include a grace period of about 10 days, but lenders legally can repossess after any default under the loan terms.

Can I get my car back after repossession in Ohio?

Yes, but it depends on your lender. Under RISA (dealer financing), you can reinstate by paying past-due amounts plus up to $25 in repo costs within 20 days. Under UCC rules (bank financing), you must pay the entire loan balance plus all repo costs to redeem the vehicle.

What is a deficiency balance after car repossession?

A deficiency balance is the amount you still owe after your car is sold at auction. If the sale proceeds don't cover your loan balance plus repossession costs, you're responsible for paying the difference.

Can repo companies take my car from my garage in Ohio?

No. Repo companies cannot take your car from a closed garage or behind a locked gate. Taking a car from these locations counts as breaching the peace, which is illegal under Ohio law.

Do I get notice before my car is sold after repossession?

Yes. Ohio law requires lenders to send you notice at least 10 days before selling your repossessed vehicle. The notice must include details about the sale date, time, location, and your rights to redeem or reinstate.

Ohio Repossession Laws: What You Need to Know in 2024