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