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I have an auto loan in the U.S. Can repossession take place across the Canadian border?

Posted: Mon Feb 05, 2007 11:29 am Subject:

Sorry to me this is avoiding a REAL debt..
why not turn in the car? if you cant make the payments or call and work something out.. taking a car across the boarder to avoid payments or being repo is not the questions I thought this site was here to answer and help with...

Posted: Mon Feb 05, 2007 11:48 am Subject:

I looked it up they can get it! I really think you should just turn the car in at least call the financing company.

Posted: Mon Feb 05, 2007 11:49 am Subject:

ajemerpi - can you clarify for us the circumstances on your repossession? Did you move to Canada and not make payments, fall behind due to personal circumstances, or what happened? We might be able to help you with advice to work out a payment plan with the lender and avoid repossession altogether.

Posted: Mon Feb 05, 2007 12:42 pm Subject:

Just a thought, why take tensions across the border and ruin your identity there. The laws in US and Canada are almost similar. The loan company will use their sources and do aggressive collections, because they will assume that you were intentionally avoiding the payments. They will not consider your problems because you didn't contact them in the first place. Call the loan company now and you may be able to arrange something good.

Posted: Mon Feb 05, 2007 12:49 pm Subject:

Are you already behind in the payments? If this is the case, you should immediately call the loan company before they send a tow truck and pick your car. Most companies do this if the payment is late by one day only.

Posted: Mon Feb 05, 2007 2:14 pm Subject:

They can repo the car in Canada but they have to notify authorities that they are doing it and they also have to have authorities with them when they come calling. Here in Canada, they have to go to court to repo a vehicle bought here.

Posted: Mon Feb 05, 2007 6:49 pm Subject:

You are supposed to get permission from the lienholder anytime you bring mortgaged property into another country. I have had customers of mine, who were stopped by customs, and the border patrol would not let them cross until I faxed a release giving permission to take my security interest out of the country.

Since it appears you have already made it across the border without incident, the answer is YES - they can pick up the car in a different country. And it is usually legal for them to charge travel/mileage for the actual costs incurred in repossessing the chattel.

Posted: Mon Feb 05, 2007 7:05 pm Subject:

I didn't realize that you have to have permission to take mortgaged property into another country. It's not like I have the money to go across the border, though Sad

Posted: Mon Feb 05, 2007 9:31 pm Subject:

If you still have the financing contract, read the fine print on the back side. First it tells you that you need to keep insurance on the vehicle at all times while it is being financed. Second, it says something to the effect of "Buyer shall not sell, lease, encumber or place said motor vehicle in any other person's possession or remove it from the United States without written consent of the holder of this contract." To take the vehicle out of the country could be considered as concealing the property from the lienholder.

As a finance company, state law backs us on this one:

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Can debt collectors repossess my car in Canada?

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