Vehicle repossessions can be a stressful and confusing experience. Understanding your rights and the legal process in Wisconsin can help you navigate this situation. This blog post provides a general overview of Wisconsin's repossession laws. It's important to remember that this information is for educational purposes only and not legal advice. If you're facing a repossession, consult with an attorney to discuss your specific situation.

Understanding Secured Loans and Repossession

When you finance a vehicle, the lender holds a "security interest" in the vehicle. This means they have the right to repossess it if you default on your loan. Default typically occurs when you fail to make payments as agreed.

Wisconsin's Repossession Laws:

• Self-Help Repossession:
  • Wisconsin law allows for "self-help" repossession, meaning the lender can repossess your vehicle without a court order, as long as they do so without "breaching the peace."
  • "Breach of the peace" is a term that means using force, threats, or causing a disturbance - or even repossession of a vehicle over a simple (and calm) verbal protest. It's illegal for a repossession agent to enter a closed garage or break a lock to take your vehicle.
  • They can take the vehicle from a public street, your driveway, or an open parking lot.
• Notice of Default and Right to Cure:
  
  • While not always required before the repossession itself, after a repossession, the lender must provide you with a written "Notice of Our Plan to Sell Property." This notice outlines your right to redeem the vehicle by paying the outstanding debt and any repossession costs.
  • Some loan agreements may require that a notice of default and right to cure is sent before a repossession occurs. Check your loan documents.
• Sale of the Vehicle:
  • After repossession, the lender will typically sell the vehicle at a public or private sale.
  • The lender must act in a "commercially reasonable" manner when selling the vehicle.
  • You are entitled to notice of the sale.
• Deficiency Balance:
  • If the sale of the vehicle doesn't cover the full amount of your debt, you may be responsible for the "deficiency balance." This is a highly specific analysis and will require the assistance of a lawyer to know your rights.
  • The lender must properly account for the sale proceeds and expenses.
  • If the sale of the vehicle brings in more money than what is owed, the extra money must be returned to the borrower.
• Personal Property:
  • The lender is not entitled to your personal property inside the vehicle.
  • You have the right to retrieve your belongings.
  • It's best to remove all personal items from your vehicle before it's repossessed.
• Legal Recourse:
  • If you believe the repossession was unlawful (e.g., breach of the peace), you may have legal recourse.
  • You can consult with an attorney to discuss your options.
  • You may be able to sue for damages.

Understanding Wisconsin's repossession laws can empower you to protect your rights. If you're facing a repossession, take action immediately and seek professional legal advice.

Attorney Nathan DeLadurantey offers free consultations to explain your legal rights in Wisconsin. Free consultations can be scheduled online.