Your right to repossess

| Jan 4, 2020 | Firm News |

You started your small business because you enjoy the work and figure you can make a living doing it. You did not start your business so you could force people to pay their debts to you. Unfortunately, that comes with the territory.

It is common to hear about the rights of people fighting off repossession. The fact is, they agreed to a deal with you and broke their promise to pay. In effect, they are trying to take money out of your pocket. When someone owes you money, you have rights, too.

What is repossession?

Repossession occurs when you secure property after someone defaults on their payments. The property may be in their control, but the sales agreement gives you an ownership interest. The buyer must abide by the payment plan in the contract. If they fail to do so, you have the right to repossess.

Most often, people hear about motor vehicle repossession. Repossession also covers jewelry, real estate, rent-to-own furniture and electronics, artwork, and more.

What are your rights?

You can begin the repossession process almost immediately after the account enters delinquency. Be sure to check the terms of the sale agreement for a “grace period.” You may contract with a repossession service to take the property. Then you may sell the property to pay off the debt, cost of the sale and attorney’s fees.

In general, you do not need a court order to repossess property in Ohio. The terms of repossession often are part of the sale agreement.

The process works the same way for property that is under a lease. If someone misses a payment, you have the right to take action.

What are your options?

Even well-meaning customers fall behind in payments. They can suffer a financial crisis. They can lose their jobs. But you should not have to pay for their misfortune.

You are in business to provide for you and your family. Sometimes that means collecting a debt. Repossession may be an option, although you may need help from the law.