What you need to know
- In the event you don’t make your repayments your lender may be entitled to take and sell some of your property to pay your loan. This is called repossession. There are rules about when a repossession agent can visit your property to repossess items.
- Repossession agents can only take items that were listed as security in the loan contract, so think carefully about what you list as security when taking out a loan.
- Household necessities such as beds, fridges, medical equipment and washing machines as well as important documents such as passports and bank cards cannot be used as security or repossessed. The only exception to this is where the loan was taken out specifically to purchase that item. For example if you got a loan to buy a bed then that bed can be repossessed.
- If your goods have been repossessed and sold to pay down your loan, the remaining debt you have on that loan must be frozen. This means no fees or interest can be added to that balance. Keep an eye on your balance and if more fees or interest are added then contact your lender to have them removed.
- To find out more about repossession read ‘Problems with your loan’.