The CFPB says that in many states a lender can repossess a vehicle without warning or a court order after a missed payment, while other states require notice first. Active-duty servicemembers are protected by the Servicemembers Civil Relief Act, which bars repossession without a court order for auto loans entered before military service. Auto loan servicers must ensure every repossession is lawful; if you think it was an error, contact the lender or servicer right away, then complain or pursue court action if unresolved.
Under some state laws a lender cannot repossess if it requires “breaching the peace,” which generally means threatening or using physical force, removing a vehicle from a closed garage without permission, or continuing after you refuse. You may contact law enforcement, and it may give you a claim for damages or a defense that lowers what you owe after sale.
Belongings in the car: contact the lender right away to retrieve them and document what was inside. The CFPB found in an enforcement action that withholding property unless consumers paid an upfront fee was an unfair practice. A repossession can stay on your credit reports up to seven years, and can raise insurance rates. If it was an error, dispute it with the credit bureaus.
Some states let you pay overdue amounts and repossession costs to get the vehicle back, called curing or reinstating the loan. In any case you have the right to be notified before the vehicle is sold or kept as compensation, giving you the chance to buy it back.