• Florida has laws that govern car repossessions.florida augers image by Pix by Marti from Fotolia.com
  
  The state of Florida has laws governing how cars can be repossessed. Whenever someone gets a car loan, the collateral in the agreement is the car. If the car owner fails to make payments, the company holding the loan can repossess the car. To do this in Florida, car possessors must meet licensing requirements and comply with certain statutes.
  
  

Security Interests

• In general, car repossessions in Florida can happen because they are part of a security interest. A security interest is an interest in property that is created whenever a debt is used to buy property, such as when a consumer uses a car loan. When a security interest is entered into, the creditor (the one loaning the money) has the right to repossess the collateral (the car) if the debtor fails to live up to the terms of the loan. Because the creditor has a legal right to the property, it is allowed to take possession of the property and not have it be considered theft.
  
  

Licensing

• The state of Florida requires that any company or organization that engages in repossession activity be licensed by the state. These organizations can only operate in a single location, or if they have multiple locations, must obtain a license for each. Each person who works for these organizations must also be licensed by the state. While licensing requirements vary depending on several factors, in general, anyone who operates or works as a repossessor must have at least 40 hours of professional training before they can be licensed. Managers or operators must also have at least a year of full-time work experience in repossession before they can own their own repossession business or manage others.
  
  

Repossession

• Whenever a consumer defaults on their car loan, the creditor has the right to repossess the car with or without notification. They can, for example, take the car in the middle of the night and drive it off without telling the debtor or asking their permission. The law requires that all repossessions comply with any criminal and property laws, and that the repossessor must inventory any personal property in the vehicle and give it back to the debtor. After repossession, the creditor may decide to sell the vehicle to satisfy the debt.