Repossession is generally used to refer to a financial institution taking back an object that was either used as collateral or rented or leased in a transaction. Note that repossession is a "self-help" type of action in which the party having right of ownership of the property in question takes the property back from the party having right of possession without invoking court proceedings.

This is usually done in accordance with a purchase contract or credit contract, in which the consumer agrees that the seller (the "lienholder" may repossess the object if the signers are past the grace period (generally for prime lenders the critical number is 30 days late making an installment payment but can vary based on how many payments have already been made, the length of the business relationship, reason why past due, etc.). Contracts that authorize repossession also usually specify additional fines that the consumer must pay to the seller, ostensibly to cover the seller's costs of the repossession and of depreciated value of the object, as the seller is now in possession of a "used" object. In some places self-help repossession is not permitted; the lien holder is required to go to court to obtain an order of replevin. However, in some states, repossession is mandatory and suits of replevin are not permitted.[citation needed]

If a lender finds itself in the situation of needing to repossess property while the borrower attempts to avoid this, the dealer may contract the work of repossession out to a repossession agent. Many things can be repossessed, but most repossession agencies focus on auto repossession.

The repo agent normally uses a tow truck or pickup truck with a special towing attachment, but sometimes they pick the lock or obtain the key from the car owner.

Usually the vehicle owner must be notified of a repossession. The repossession agent will find the car and check the VIN to make sure they have the right car. They will then hook up the car to the tow truck and tow it away or pick the lock and drive it away.

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U.S.

A provision of law, requires when repossession takes place, the lien holder has a non-delegatable obligation not to cause a Breach of the Peace (which is synonomous with disturbing the peace) in performing the repossession or the repossession will be reversed, and the party ordering the repossession will be liable for damages (or the lienholder will be held responsible). This requirement not to breach the peace includes even if the breach is caused by the debtor objecting to the repossession or resists the repossession. In the court case of MBank El Paso v. Sanchez, 836 S.W.2d 151, where a repossession agent towed away a car even after the loanee locked herself in it.The court decided that this was an unlawful breach of the peace and declared the repossession invalid. The debtor was also awarded $1,200,000 in damages from the bank.

Repossession does not necessarily satisfy the loan. If the repossessor sells the asset for an appropriate amount, and if that amount is less than the amount of the loan, and if the repossessor sues the debtor for the balance (plus reasonable fees if applicable) in a timely manner, the debtor will be liable to pay the balance. This is assuming that the debt is a recourse debt, and not a nonrecourse debt. [1]

@BAC & oyb,
your opinions above represent the typical wisdom of nigerians that have brought us this far in developments. most of us who had the priveledge and opportunities to be in the universities or travel to the uk do think they are in good positions to use and manipulate english language.
crime is crime and they fall under the anointing of efcc especially when the crime has to do with finance. be not decieved, what our so-called elites do is to gather the poor masses funds and use them to buy private jets while the poor ppl loose out in all rounds.
if what these fools committed are not crimes, what happens to those banks that went bankcrupt? nigeria has about 25 banks and 5 are been investigated so what is wrong with that? this has been the case with nigerian where ppl loose their deposits just no other than these so-called rich men.
it is high time these jimohs, dangotes and otedolas are told the game is over.
in other developed countries, these kind of conmen die in the prison yards while countries like china will sentence them to death.

i suppose western nations have the right to arrest Nigeria and other countries that haven't finished paying of their debts. maybe that was why OBJ paid the paris club - maybe Nigeria would have been invaded and sealed off.

debt defaulting is a LEGAL matter, not a criminal one .

most of you are going on like this because of beef for all those ' rich parasites'

i repeat, waziri is an olodo - 90% of those debts were never meant to be repaid immediately, but piecemeal. if any business was to repay all that money at once it would immediately fold up - where do you think the workers would be then?

1. how does a bank go bankcrupt?
2. what is the implications of a failed bank as it concerns her costumers?
3. what do you think about mds giving loans to their pals and faily members at the detriments of the public who must have trusted them with their life savings?
4. if you are a in charge, would you rather allow these banks to go down or go after debtors?

5. how much money is bill gate owning american banks?

6. what is the relevance of loan to the banks and their costumers?

7. what do u think were the reasons behind failed banks in nigeria before and how do u reconcile that with the situations at hand?
8. what is your definition of a limited liability company and how do you relate that to the risk eminent in the case of the costumers?
9. at what point do u think the cbn and the police shld step in for these distressed banks?
10. what is your opinion about bank costumers who stand the risk of loosing their life savings might these situation go from bad to worse?
11. if the rich men did not commit crimes and according to you, the mds were responsible for giving them loans without following the due process, do u think the law has no room for accomplish in any crime?

Ad+:

Borrowing money from the bank is not a crime and being a deptor is not a crime either but taking a loan without  following the right order is a CRIME.EFCC has the right to investigate financial crimes and this has nothing to do with the court unless the bank wants to go thru the legal process.The law can only come in if EFCC is going beyond its boundries.

Outstrip:

Brorrowing money and not paying back in a timely manner is not necessarily are crime but this case is different. It is bigger than just non performing loans. If these people were breaking laws by taking that much money then it becomes a crime. If the bank gave out more than it is legally required to by law then it is a crime. When the actions of these few people can be catastrophic for the economy then it's time to take action. Maybe the EFCC knows something we do not. What deals did they make with the banks Did they lie to get the loans?

bigboyslim:

I'm appalled at the way we are quick to rise to the defence of these debtors. Clearly, if you borrow money and you agree to commence repayment within a stipulated period of time, it is only fair that you stick to the agreement. Life is not fair, agreed but if by any stroke of ill-luck or unfortunate circumstances your business does not perform, it is not the duty of the bank to hold night vigils and fasting sessions for you. Business is a risk and it is not the bank's responsibility to manage your business' risk for you. The bank is not a charity organization doling out money to better the lot of the population. The bank is a business entity whose objective is to make profit and remain in business while protecting the interest of their shareholders and depositors. I'm sure if any of these banks are to end up failing these same people would be the ones shouting that why didn't the government step in before it is too late.

I agree with the move by EFCC to start taking over the properties of the debtors if they do not COMMENCE REPAYMENT along the terms of the original contract signed. I've noticed that the average man likes to borrow even when he has no clearly defined means of paying back and if this same attitude is allowed to propagate into a business entity, the end results are not always favorable.

A stitch in time they say saves nine.

bigboyslim:

I'm appalled at the way we are quick to rise to the defence of these debtors. Clearly, if you borrow money and you agree to commence repayment within a stipulated period of time, it is only fair that you stick to the agreement. Life is not fair, agreed but if by any stroke of ill-luck or unfortunate circumstances your business does not perform, it is not the duty of the bank to hold night vigils and fasting sessions for you. Business is a risk and it is not the bank's responsibility to manage your business' risk for you. The bank is not a charity organization doling out money to better the lot of the population. The bank is a business entity whose objective is to make profit and remain in business while protecting the interest of their shareholders and depositors. I'm sure if any of these banks are to end up failing these same people would be the ones shouting that why didn't the government step in before it is too late.

I agree with the move by EFCC to start taking over the properties of the debtors if they do not COMMENCE REPAYMENT along the terms of the original contract signed. I've noticed that the average man likes to borrow even when he has no clearly defined means of paying back and if this same attitude is allowed to propagate into a business entity, the end results are not always favorable.

A stitch in time they say saves nine.

Nezan:

@ oyb: how many followed due process?