Are there laws that prevent a car from being repossessed if it is a family’s only form a transportation?

UPDATED: Mar 30, 2011

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Are there laws that prevent a car from being repossessed if it is a family’s only form a transportation?

We were forced to take out a title loan in MO since they are illegal in NE. The lender is charging enormous interest daily for a $1,000 loan. We’re barely able to make the interest. I just wanted to see if there a limit that they can charge or are we just screwed?

Asked on March 30, 2011 under General Practice, Nebraska


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If you were forced to take out a title loan in one state because they are illegal in your resident state (where the car is registered supposedly), you might be able to obtain all of your money back that you paid in because usually those loans are considered illegal since that entity cannot be licensed in your state to conduct business with Nebraska consumers. Contact the agency who regulates such lenders (file a complaint with the state attorney general and state banking department) and then contact the credit reporting agencies that show this title loan. Dispute the loan and go from there. As to your general question regarding car repossession, unlike homestead laws concerning your primary home, your motor vehicle could be repossessed if this loan winds up being enforceable even if it the primary form of transportation.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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