How to write a vehicle repossession letter

Updated March 23, 2017

Legally, a lienholder can repossess a vehicle as soon as there's a breach in contract, typically a missed payment. While most lienholder's offer a grace period, they are not required to. In most instances, after a contract is breached, a demand for payment letter is sent. Often, multiple letters are sent. If the account is still not brought current, a notice for vehicle repossession letter is sent. The vehicle will then be repossessed if the account isn't made current in the specified time.

Open a Microsoft Word document. Click the "File" tab and then "New." Scroll down through the template categories list until you see the icon labelled "Letters," and click on it. Next, click on "Business Letters," followed by "Collection Letters." Scroll down through the list of templates and double-click on "Repossession Notice."

Enter your name and contact information in the designated spaces. Clicking once over each area highlights the field and allows you to type your information over the default template data.

Enter the recipient's name and contact information in the designated spaces. Again, you only need to click one time over each area to type in the new information. Be sure to also enter the recipient's name after "Dear" in the greeting.

Alter the first paragraph of the repossession letter to better cater to this specific vehicle repossession. Add details such as the make, model and year of the vehicle to identify it. Also state the reason why you're repossessing the vehicle. For example, if the repossession is taking place due to the missing of three monthly payments of £195, you should say the account is behind 90 days in the amount of £585.

Write the repossession details in the second paragraph. For example, if the repossession will take place in the next 10 to 14 days, state that a representative will take possession of the vehicle during that time frame.

Write about alternatives in the third paragraph. This section is optional, but if you still want to give the borrower a chance to catch up on the loan, do so in this paragraph. You can say something along the lines of "If payment in full is made within seven days, repossession efforts on the said vehicle will cease."

Enter your name and title over the generic template information at the bottom of the letter. You can also sign the letter by hand.

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