Information on Car Repossession Laws in North Carolina

Creditors are not required to give notice that a repossession will take place.
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Car repossession in North Carolina is permitted as long as it does not breach the peace. There is no right of vehicle redemption after foreclosure and sale of the vehicle. The license plates from the vehicle remain the property of the debtor.

Rights of the Finance Company

A deficiency balance may be owed after the vehicle has been sold.

If you miss a payment on a vehicle in North Carolina, it is best to contact the finance company to avoid a repossession. When the vehicle is repossessed, the finance company has the right to ask for the late payments, plus the cost of repossession, or to ask for the entire balance of the loan to be paid.

Rights of the Debtor

Difficult economic times have increased the number of repossessions.

In North Carolina a voluntary repossession is when a debtor tries to return the vehicle in an attempt to relinquish responsibility. If the vehicle is to be sold or auctioned, the debtor will be notified of the time and place. Repossession companies in North Carolina are not required to allow personal items to be removed from a vehicle.

Reasons for Repossession

North Carolina creditors may repossess your car based on presumed financial risk.

North Carolina creditors have rights to repossess property for reasons other than delinquent payment. A finance company can repossess a vehicle if your contract states that you must carry insurance on the vehicle, and your coverage has lapsed. Cars can be repossessed if your financial situation has changed, and the creditor feels the situation is a risk of loan default.

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