How to Protect Yourself: Automobile-Repossession Source: The Florida Attorney General's Office When you buy a car, truck, or other vehicle on credit, your creditor retains important rights in the vehicle until you have made your last payment. These rights are established by the contract you signed and by state law. The failure to make timely payments carries serious consequences. Your creditor then has the right to "repossess" - take back - your car without going to court, or without warning you in advance. However, state law does place limits on how the creditor may repossess the vehicle and resell it to reduce or eliminate your debt. Consider the following: For further information, you may choose to contact your private attorney. Talk to your Creditor. Since it is difficult to dispute a repossession once it has occurred, contact your creditor once you realize your payment will be late. Many creditors will agree to a delay if they believe you will pay at a later date. What is Default? What constitutes default will be defined in your contract. An example could be failure to make a timely payment. However, if your creditor has agreed to accept your late payment or to change your payment date, then the terms of your original contract may no longer apply. If you do reach an agreement to modify your original contract, make sure it is in writing and signed by both parties to the contract.