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In a NutshellRepossession is the process of taking back a car after the owner defaults on their auto loan. Each state has different laws and regulations that dictate every step of the repossession process from start to finish. This page will provide an overview of Louisiana's Repossession Laws and what you should know if you've fallen behind on car payments.
Written by Upsolve Team.
Updated March 22, 2024
Many people need to get an auto loan to purchase a car. When you finance a car with a lender, you sign a contract stating that if you don’t make your payments the lender can take the car back. This is because the car is securing the loan as collateral. If you don’t make your payments, the lender can take the car back in a process known as repossession. State laws dictate what lenders can and can’t do in a repossession. The state of Louisiana’s laws spell out the lender’s rights, as well as your rights as a consumer.
Louisiana statutes state that you have to miss two consecutive payments on their due date before the lender can initiate repossession proceedings. If you make your payments more frequently than once a month, you’re considered to be in default once 60 days have passed since you last made a payment. It’s also helpful to read the contract you signed when you purchased the car. It will have more specific information about what happens when you default on your payments.
Under Louisana state law, your lender (also called the secured party) must send a written notice to your last known address prior to repossessing your motor vehicle. This notice of repossession must contain:
Depending on the terms of your loan agreement, this may be the only type of notice you receive. The law doesn’t specify the number of days the lender must send the notice prior to the repossession.
You can prevent repossession in Louisana by:
If you’re unable to continue paying for your car, you can return it to the lender or dealership where you purchased it. This is called a voluntary surrender or voluntary repossession. Many lenders will ask you to sign a form that states you’re giving the car back when you do a voluntary repossession. You're not required to do this, but it can help you avoid paying the repossession fees. This will reduce the deficiency balance or the amount you have to pay after the lender sells your car.
Louisiana repossession laws require repossession agents to get a license from the state of Louisiana’s Office of Financial Institutions. The repo company may only proceed with a repossession without going through a judicial process or getting a court order if they’re able to do so without a breach of the peace. This means that they can’t use force, threats, or intimidation while repossessing your car. While they can take your car from any public space, they can only take the vehicle from your property if they’re able to do so without breaching the peace. They can’t break locks or force through fences to retrieve the car.
You’re also not allowed to commit a breach of the peace during the repo process.
If you’re worried that your car may be repossessed, take care not to leave any personal property in it. If you do, and your car is repossessed, you have 10 days to contact the repossessing creditor and demand the return of your property. The creditor is required to return your items immediately. If you don’t contact the creditor within 30 days, the property is considered abandoned, and the creditor is no longer responsible for it.