If you are struggling to make payments on your car loan in Florida, it’s crucial to understand your rights. That includes knowing how long creditors have to repossess your car if you default on your loan.
The Florida auto repossession defense attorneys at Loan Lawyers are here to protect you from illegal practices by lenders and help you avoid the worst outcomes of defaulting on a loan. Below, you’ll find essential information on Florida repossession laws, including the statute of limitations on car repossession. Keep reading to learn more.
Statute of Limitations on Car Repossessions in Florida
According to state law, the statute of limitations on car repossession in Florida is five years from when you defaulted on the loan. Florida law also says a lender can take action to repossess your car after 30 days from the date of your missed payment. Contact an attorney immediately if you can’t make your loan payments and are facing repossession of your car.
How Does the Car Repossession Process Work?
The car repossession process in Florida must follow state law and the terms of your loan agreement. Here are the key steps involved in it:
- Notice of default – The process starts when your lender sends you a notice indicating a default on your loan. While Florida law does not always require this step, many creditors choose to notify as a preliminary action.
- Right to cure – Most lenders will give a right to cure the default on your loan, which is a grace period to catch up on late payments before any efforts commence to repossess the vehicle.
- Repossession – If you fail to satisfy your missed payments and surrender the car yourself, your lender can proceed to repossession. In Florida, creditors can repossess your car without a court order, provided they do so without breaching the peace. This means they cannot threaten you or restrain you.
- Post-repossession notice – After repossessing your car, your lender must inform you about their intent to sell the vehicle. Florida laws say they must notify you at least 10 days before the sale.
- Vehicle sale – Your lender may recoup their losses by selling your car through a public auction or private sale. The proceeds go towards your loan balance, including repossession and sale costs.
- Deficiency notice – If the proceeds of the sale do not cover your loan balance and other costs, you may receive a deficiency notice demanding payment of your remaining balance.
Time Limits for Collecting a Deficiency Balance
When lenders sell a repossessed car, they rarely get enough to cover the outstanding initial loan. The difference between what the lender gets from selling a repossessed car and how much the original owner owes is called a deficiency balance. In Florida, lenders have five years to file a lawsuit to collect a deficiency balance — but they cannot initiate suit if the amount of the deficiency is less than $2,000.
Contact Our Fort Lauderdale Car Repossession Lawyers for Help
Are you worried that your car might be repossessed? An experienced Fort Lauderdale car repossession lawyer can help you identify potential debt solutions. Call Loan Lawyers today or complete our contact form for a free consultation.
