How to Write a Vehicle Repossession Letter

Repossessing a vehicle isn't as simple as taking the car under cover of night and never being heard from again. You generally don't need to provide advance notice that you intend to take the car -- though some state laws vary on that count, depending on the details of the lending agreement -- but you do need to provide specific notice after the fact.

Required Contents

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The required contents of the vehicle repossession letter will vary slightly based on state law, as do the rights the debtor has to reclaim the vehicle. However, the basic requirements are that you inform the delinquent borrower that you have called the loan and repossessed the car, and tell her the next steps that can be followed if she wants to reclaim the it.

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Start by including your name, the loan information and the nature of the deficiency. Confirm that the vehicle was taken as security for the delinquent debt. In most cases, you'll also need to include the following information in your vehicle repossession letter:

• The outstanding balance on the loan at the time of the repossession, including any relevant fees or other charges. States can limit some of these charges, but also allow you room to provide added security. For example, Ohio caps the fees associated with the repossession at $25, as of 2015.
  
• The deadline for the buyer to redeem the loan. For example, in Connecticut, the delinquent borrower has 15 days to settle the debts associated with the vehicle, along with any storage costs.
  
• The method by which the buyer can make the necessary payment to redeem the loan. For example, you can require the buyer to pay in cash or certified funds to avoid the danger of a bounced check. You may also be able to demand an additional deposit. Ohio, for example, allows you to require up to two months of car payments as part of the funds necessary to reclaim the vehicle.
  
• Any other relevant state laws. You may have to let the borrower know that the car is being stored within the state per local requirements, for example, or offer an opportunity for the borrower to reclaim personal possessions from the repossessed vehicle.
  

Tip

Make sure to send the letter by the deadline specified in your state. For example, in California, the delinquent borrower must be notified within 48 hours.