What Are the Repossession Laws in Arkansas?
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.
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.