Q:

What are the repossession laws in Arkansas?

A:

Quick Answer

In Arkansas, lenders are given certain rights to ensure they continue to receive payments. One major right lenders are granted is the ability to take back any goods that have a loan in default, according to Credit Info Center. A loan defaults if there is a failure to make payments as agreed upon.

Continue Reading

Full Answer

Although lenders have the right to repossess goods with a loan in default, there are rules that must be followed. Repossession companies are allowed to trespass on property, but they are not allowed to enter any closed structure such as a garage or shed. The repossession process must be peaceful, and the repossession company cannot make any loud disturbances while attempting to take the owed-upon goods, notes Credit Info Center.

In Arkansas, after the goods have been repossessed, lenders must allowed a 10-day period for loan holders to pay the amount owed. If the amount owed cannot be paid in the 10-day grace period, the lender has the right to sell the goods privately or at a public auction, explains Credit Info Center. The lender must report any surplus monies after the goods are sold and the debt is paid. If there is a balance, debtors may still be responsible for payment of that debt.

Learn more about Debt Law

Related Questions

  • Q:

    What are the repossession laws in Missouri?

    A:

    Car lenders in Missouri can repossess a car, try to sell it and then collect the difference between the sale price and remaining loan balance, according to Nolo. Lenders can repossess a car without a court order in Missouri, notes attorney Douglas B. Breyfogle.

    Full Answer >
    Filed Under:
  • Q:

    What are the repossession laws in Pennsylvania?

    A:

    Pennsylvania law allows lenders to repossess property in which they have a security interest if the debtor falls behind in payments, according to the Pennsylvania Legal Aid Network. For lenders to take this action, there must be a written security agreement and it must be possible to peacefully repossess the property.

    Full Answer >
    Filed Under:
  • Q:

    What is waiving homestead rights?

    A:

    Waiving of homestead rights is an agreement between a borrower and lender to waive the homeowner's statutory homestead rights under state law, according to US Legal. Homestead rights protect a homeowner's equity from creditors in cases of default. Typically, homestead waivers apply to residential mortgages and homeowners association contracts.

    Full Answer >
    Filed Under:
  • Q:

    What are the laws governing debt collection rights for customers?

    A:

    Laws governing debt collection rights include a debt collector having to validate any debt the collector is attempting to collect, the Federal Trade Commission says. The law also mandates that a debt collector cannot contact a debtor before 8 a.m. or after 9 p.m., and a debt collector cannot contact a debtor at her place of employment if the debtor asks the collector to cease reaching out to her at work.

    Full Answer >
    Filed Under:

Explore