Car repossessions are increasing due to the difficult economic times we are in, but it’s important to know you have certain rights when a bank wants to repossess your car, the Banking Ombud says.
She notes it is important to understand the legal principle that under vehicle financing agreements, the vehicle remains the property of the bank until the loan is repaid in full. “Unfortunately, this is not the case. The consumer’s obligation to repay the debt together with the bank’s right to sue the customer for repayment prescribes.”
Adverse information listed on your credit report, limiting your ability to access further credit in the future A bank representative must try to contact you with the aim of settling the arrears. It is only if this process is unsuccessful, for example if you avoid the bank’s calls or emails, that the bank can resort to litigation.
“If the bank cannot show that it sent you a section 129 notice, a court will not grant judgment against you. However, the bank’s only obligation is to send this letter to your chosen address by registered post. There is no legal requirement on banks to prove that you received it and therefore, it is vital that your contact details with your creditors are up to date,” she says.