Can I tell the bank, “NO! You’re not taking my car”? Keep reading to know.

Owning a car is a dream come true. From school runs to longer road trips, we cherish every kilometre we get to spend in our cars. Even when we know it’s time to say goodbye to our ‘ride or die', it’s a difficult one. And if a goodbye is forced upon us, sooner than we’re ready, it can be heart-breaking.

If you fail to keep up with your vehicle repayments, you’re at risk of losing your car. Car repossession is a stressful process that nobody wants to go through. However, if you find yourself in this situation, it’s essential to understand your rights and to know how to respond to a repossession notice.

Understanding Your Rights

  • It’s crucial to understand that you have rights during the car repossession process. Repossession agents are not allowed to use force or threaten you in any way. Additionally, they are not allowed to enter your property without your consent or interfere with your possessions.
  • Repossession agents are not allowed to seize any personal items. If they attempt to do so, you should contact the police immediately. You also have the right to ask them to leave if they arrive at your property.
  • You must be provided with a Notice of Repossession. This notice will include details such as the date of repossession, the name of the lender, and any other relevant information. It’s important to read through this notice carefully and take note of any instructions or information it contains.

Responding to a Repossession Notice

  • If you receive a repossession notice, and wish to dispute it, it’s important to act quickly and respond with a Notice of Objection as soon as possible. You can start by gathering all the documents related to the loan or lease agreement, including the original paperwork and any subsequent payments or communications. This will ensure that you have the best chance of protecting your property.
  • It’s also essential to seek legal advice as soon as possible. A lawyer can help you understand your options, and can represent you during the repossession process.

Legal Requirements for Car Repossession in South Africa

  • A lender can only repossess a vehicle if the borrower has defaulted on their payments. The National Credit Act No. 34 of 2005 provides guidelines for the repossession process, and lenders must follow these guidelines to the letter.
  • Before a lender can repossess a vehicle, they must provide the borrower with a written notice of their intention to repossess the vehicle. The notice must include the amount that is in arrears, the steps that the borrower can take to remedy the situation, and the deadline by which the arrears must be paid.
  • If the borrower fails to pay the arrears or make alternative arrangements with the lender, the lender can then apply for a court order to repossess the vehicle. The court order must be served on the borrower, and the borrower has the right to dispute the matter in court.

Navigating car repossession can be overwhelming. While you may not be able to stop the process from moving ahead, it is important to know what steps to follow and to know your rights.

If you are at risk of having your vehicle repossessed, stay calm, seek legal advice, and follow the process.