Massachusetts Repossession FAQs
Q: Under what circumstances can my car be repossessed?
A: Your car can be repossessed if you fail to meet the terms of your loan agreement. Typically, this occurs in cases of non-payment. Note that your rights may differ depending on whether you own (finance) or lease your vehicle: in the case of a lease, the lender is not required to provide the same notice requirements as in the case of a financed vehicle, though you should consult your lease carefully to see if any special considerations apply.
Q: Am I entitled to any type of notice before repossession occurs?
A: Yes. Ten days after your non-payment, the lender is required to send you a notice called “Rights of Defaulting Buyer under the Massachusetts Motor Vehicle Installment Sales Act”. The lender is also required to give you 21 days to repay the amount you owe in order to avoid repossession. This is called the right to cure your default. The notice must clearly state the due date and the final amount due.
Q: Is there notice required after the repossession?
A: Yes, the lender is required to give you a post-repossession notice, which needs to have specific language regarding your rights. The lender must give you an additional 20 days to pay the loan in full before they can auction off your vehicle. Additionally, the repossession agent has to inform the police in your town about the repossession within one hour after it happens.
Q: Can the repossession agent take my car if it is parked on the street?
A: Generally, yes. As long as the agent does not engage in a breach of the peace while conducting the repossession, they may take your car when it is parked on a common roadway. However, in Massachusetts, they may not enter your property without your permission to do so while they are conducting the repossession—this includes your garage or driveway, if your car is parked there.
Q: Can the repossession agent use force or threatening language against me?
A: No. The agent has to follow certain guidelines during the repossession, and those include not using any force, threats, or coercion. Additionally, a repossession agent may not engage in fraud or trickery in order to repossess your car.
Q: Am I still responsible for paying back the loan amount after my car is repossessed if I want my car back?
A: The lender must give you a 20-day period after repossession to allow you to pay back your loan and get your vehicle back. Typically, this will be the amount you owed remaining on the loan, but the lender can also charge reasonable fees for such things as towing, storing the car, and repossession costs.
Q: Can the lender sell my car after it is repossessed?
A: In most cases, yes, as long as the lender waits out the prescribed 20-day time period during which you have the right to redeem your vehicle. After that time passes, the lender may sell the car; however, if the lender sells it for more than the remaining loan amount, they must give you the difference. The lender can only sell your car for a commercially reasonable price. Also, the lender must allow you to get back any personal property you may have left inside the car.
Q: Where can I find additional information?
A: The Massachusetts Trial Court Law Libraries site maintains an excellent resource regarding repossessions. Additionally, MassLegalHelp provides information about repossessions on its website. The Massachusetts Attorney General’s Office provides information and help for consumers regarding auto repossession issues.
Q: Where can I get help with this issue?
A: If you believe your rights as a consumer were violated during a repossession, the MCC Law Center might be able to help. The MCC Law Center Local Consumer Program works in cooperation with the Massachusetts Attorney General's office to provide free consumer services and help resolve consumer complaints. Contact us for more information.
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