Can My Lender Repossess My Car in Another State?

“Dear Steve,

Due to some financial challenges, I have been behind my car note for almost 4 months in the State of Tennessee and the Credit Union wants to repossess the car. I told them I’m not in town because right now I’m in another state (Maryland) with the car for a program. They called me and requested to tell them where the car is so that they can come and pick it up. I’m trying to make arrangement with them, but they don’t want to accept that. My question is can they repossess my car in another state?

Can my creditor repossess my car in another state?


Dear William,

There seems to be no doubt that you are delinquent on the car payment. The issue becomes really complicated for you if the lender feels you are intentionally hiding the car to avoid repossession. If it is determined you are then you may be guilty of a fraudulent conversion or removal of property to avoid repossession and that can land you in court. If the lender asks, you must disclose where the car is now. They will probably hire a local repo agent to come and get it.

The sooner you hand the car back at this point the less additional fees and charges will be added on.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

Damon Day - Pro Debt Coach

See also  Why Do You Think They Repossessed My Car?

14 thoughts on “Can My Lender Repossess My Car in Another State?”

  1. so my question is this i had a car repossessed a week after i had surgery. the car was not in my possession at the time because i could not drive. it was at a friends house. i told the repo guy where car was and was as cooperative as i could be. i lived in wisconsin and that is where car was registered. i was attending school in minnesota and just finished when i had the surgery so i was staying in minnesota. anyway when the repo guy came to get car i had no idea it was going to happen i got no notice or call even though bank had all information. because of surgery i fell behind on agreed payment. i called the bank and asked why i was not notified because wisconsin law says they have to give a written notice 30 days before repossession occurs. they told me because i was now in minnesota that they did not have to give me notice because of minnesota repossession laws. my car was registered in wisconsin i was still a legal resident of wisconsin and everything related to the car was wisconsin. but because i had a minnesota address because of school they said they didn’t have to follow wisconsin repo laws but instead minnesota. is this correct and if not what can i do if anything thanks in advance for any help

  2. This is the ONLY website that I found information on a similar situation to mine. And in two replies, Steve, you still didn’t answer the question. William, like myself, would like to know if the lender can repossess a car in another state. Stating how the lending system works isn’t helpful. It seems your advice was judgmental and speculative of something William wasn’t implying (hiding the car). This is by far the worst advice I’ve ever seen on a website.

  3. The fact is that is true that I’m not in town. I drove the car down here and the transmission is mess up so I can’t even drive the car back until is fixed. I told them the situation of the car and explain to them that I’m trying to fix the car and drive it down and give it to them or pay the past due. The car has 130,000 miles on it and told them I’m willing to work with them to finish the payment of this loan because even if they repossess the car they may not get much money out of it and I will still own them, so why not work something out with me. I really need your advice, Steve. Thanks in advance.

    • William,

      That’s not the way the system works. The lender at this point is probably happier about you defaulting so they can repossess the car and go after you in court for a huge judgment. That judgment will be legally binding and may lead to your wages being garnished and they will get paid. There is no motivation for them working out a “deal.”

      They know they aren’t going to get a lot of money out of it and to them it doesn’t matter since you’ll have to pay the difference between the little bit the car sells for at auction and the amount you owe.



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