When a customer enters into a contract with a creditor or lessor for a car, they agree to certain terms and conditions. These will often include a contractual term that allows the creditor to repossess the vehicle.
Whether or not the creditor can take advantage of the contractual ‘right’ to repossess the car will depend on several factors. For example, where a customer has paid one-third or more of the total price of the goods, under a Consumer Credit Act (CCA) regulated hire-purchase or a CCA regulated conditional sale agreement, the creditor is not entitled to recover possession of the goods from the debtor except following an order of the court. The creditor may also be precluded from repossessing a vehicle if it is located on private property.
In some circumstances, however, it may be possible (and legal) for a creditor to instruct a car repossession without notice; which is why a good dialogue between lender and customer is essential.