Minnesota debtors may face repossession of their car if they fail to abide by the terms of the loan agreement. The loan agreement is signed by the debtor and describes what constitutes a default of the loan.
Debtors who fail to make the required car payments or make late payments, are considered to be in default of their loan. Default of the car loan may also occur if the debtor fails to maintain proper automobile insurance on the vehicle. Minnesota law states that car lenders have the right to take possession of the car in the event of owner default, without judicial process.
Breaching the Peace
Minnesota car lenders must repossess the car in a peaceful manner. Repossession agents are not allowed to breach the peace while in the process of a repossession. Breaching the peace may occur if the agent threatens or uses physical force to take the car from the owner. Agents may not enter a secured or locked area to repossess a car, as this constitutes a breach of the peace. Agents may seize a vehicle parked on the street or in a public parking lot.
Right To Redeem
Car owners that have had their car repossessed, have the right to redeem the car. According to Lawdog.com, debtors in Minnesota and elsewhere must redeem the car before the car has been sold or disposed of by the lender, or the lender has entered into a contract for sale or disposal. Debtors must pay the total amount due on the car loan, as well as any expenses that have been incurred during the car repossession. Storage fees, holding charges and legal fees may be included in the amount due for redemption.