Full question:
I sold a car to a friend of mine and now he is late with his payments. It has been over a month and he has sent me one bad check and one that was in the mail that I never received. Can I repossess the car without the courts? What are my rights?
- Category: Automobiles
- Subcategory: Repossess
- Date:
- State: Florida
Answer:
Your rights depend on the title ownership and the sale agreement terms. Under Florida law (Fla. Stat. § 537.012), if a borrower fails to make payments due on a title loan, the lender can repossess the vehicle. However, repossession must be conducted by a licensed repossession agent.
Before repossession, you must provide the borrower a chance to make the vehicle available at a mutually convenient time. You should also allow them to remove any personal belongings from the car.
Once you take possession, you can sell the vehicle, but only through a licensed dealer. You must notify the borrower at least ten days before the sale and give them a written account of what they owe, including principal, interest, and any related expenses. The borrower can redeem the vehicle by paying the total amount owed before the sale.
After the sale, any proceeds exceeding the amount owed must be returned to the borrower. They may also claim reasonable attorney's fees if they successfully recover excess proceeds. Always ensure that your actions are commercially reasonable.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.