According to the Texas Finance Code, a creditor or their agent (a repossession company) has the right to repossess a vehicle if the borrower defaults on a loan or security agreement. However, the repossession must be carried out in a lawful and peaceful manner.
Texas law states that a creditor or their agent can repossess a vehicle without a court order if the following conditions are met:
1. The default has occurred.
2. The secured party or secured creditor has demanded payment of the debt and given the debtor reasonable notice of the intention to repossess the vehicle.
3. The secured party or secured creditor is not preventing or hindering the debtor from removing the vehicle from the location of repossession.
Texas law prohibits using any type of force or violence during repossession. It also prohibits any act that causes damage or injury to the debtor or the vehicle. Therefore, blocking the debtor's car in would not be considered lawful or peaceful, as it prevents them from removing the vehicle from the location.
If a creditor or repossession company violates the law during repossession, the debtor may have legal recourse. They can sue for damages, seek an injunction to prevent further repossession, and even initiate criminal charges in some cases.
To protect your rights, if you are facing repossession in Texas, it is essential to thoroughly understand the laws and regulations governing the process. You should consult with a reputable consumer protection attorney to discuss your options and ensure your rights are upheld during the repossession process.
