Which state's laws would apply?

[laurannm]

We have decided to let our car go (not reaffirmed). The car was purchased in MA 4 years ago, but we recently moved to TN (and now the car is registered here). Which states repo law would apply, MA where it was purchased or where we live currently? I know we can call Chase auto and have them pick it up but I am going to drive it a long as I can

Thanks!

[HHM]

Out of curiosity, why does it matter? I don't think your real question is which Repo law will apply (that is somewhat of a vague question), what is the underlying issue you are concerned about.

A repo law is simply the right of a creditor to repossess a vehicle when the borrower defaults. About the only meaningful difference between state laws would be the process and what a creditor may and may not do to collect the vehicle. As such, generally, the law of where the vehicle is located would apply to the "process" of repo'ing it. Frankly, I am not aware of any significant difference among states within the bare bones of the repo law. Most states have adopted similar versions of the Uniform Commercial Code (security agreements), so there really isn't much of a difference.

[laurannm]

My thought was to take the same approach as you would with a non-reaffirmed mortgage...i.e. drive the car "payment free" as long as a I can before it gets picked up. Massachusetts has a 21-day Right to Cure before a car can be reposessesd, while TN (from eveything I have read) has no such right to cure, meaning the car can be picked up at any point without any written notice. So if by chance MA laws still apply since the lien was insituted when the car was purchased in MA, at least I will get some sort of notice before I get repo'd

[HHM]

It will be the law of TN. If that is where the vehicle is located, it will be the law of that state.

After all, you voluntarily moved the vehicle to TN, so that state's law will apply to how and when the car can be repo'd.

[patrickmead]

Great topic.