Repossession
Did you know that the item that you purchased on credit may be “repossessed” by the company that sold it to you in the first place? Whether you buy a car, a house or even furniture, the seller sometimes has what is known as a ‘security interest’ in the item. Essentially, this means that if you don’t stick to the contract and miss payments, the item can be repossessed by the seller. Generally speaking, credit card purchases are not subject to repossession.
If you make a late payment, your property may be repossessed. Sometimes, the contract that you signed includes what is known as a grace period, which allows you pay your late debt within a certain number of days. Failure to do so can result in immediate repossession of the item. If the contract you signed does not include Credit Accident and Health Insurance, the property can even be repossessed if sickness or an accident was the cause of non-payment.
Bear in mind that you are still protected to a certain extent by the law. Nobody can simply walk into your home without permission and repossess your personal property such as furniture. It is illegal for the collection service to break into your house to repossess the property and you have every right to involve the police if this is the case.
The wisest thing to do if you are faced with repossession is to contact a lawyer who will be able to advise you what to do (and what not to do!). It is much easier for the lawyer to help you prevent the repossession process than for him or her to get the repossessed items back.
Usually, creditors will give you written notice at least 10 days before the process that the items will be repossessed. If this is the case, you can get your property back only if the creditors agree and only on their terms.
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