A creditor can repossess a car only if the contract allows it, and only if the repossession is done without a breach of the peace. Even after a legal repossession, the creditor must provide the required post-repossession notice.
Companies must abide by the fair debt collection laws when attempting to collect money or property. Violations of those laws include filing suit on a time-barred debt, and false threats of arrest or wage garnishment.
Consumers often are confronted with a lawsuit based on an old debt, or a lawsuit brought by a “debt buyer” they never heard of prior to being sued. Fortunately, there are viable options for consumers in collection matters.