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
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
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 >
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 >
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 >
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 >