• North Dakota's car repossession law allows options for owners.car image by Muhammad Umair Tahir from Fotolia.com
  
  In a repossession, the lender takes ownership of a car, RV or other vehicle for non-payment. This is a major black mark on the owner's credit report, making it difficult to finance another vehicle. Most lenders shy away from financing anyone who has had a repo. If the loan can be satisfied, lenders may look beyond the initial repossession. North Dakota's law governing repossession provides options to owners who want to keep their vehicle.
  
  

Voluntary Repossession

• North Dakota law allows for voluntary repossession, in which the owner voluntarily gives up possession of the car. Voluntary repossession is reported to the credit bureaus and hurts the owner's credit rating. Some banks may see a voluntary repossession as the consumer taking the initiative to rectify a problem; others see it as equivalent to an involuntary repossession.
  
  

Wrongful Repossession

• Repossession is allowed in North Dakota if the vehicle is taken in a peaceful manner. Removing the vehicle in a violent or forceful way is illegal under the state's Uniform Commercial Code. Breaking into a garage to take a vehicle is not permitted. A car cannot be repossessed after the owner or a family member objects. Foul or threatening language by the repo agent is also not permitted.
  
  

Reclaiming Repossession

• To reclaim a repossessed vehicle, the owner must make up any past-due payments plus accrued penalties. The owner also has to pay any repossession fees. Another way to reclaim a vehicle is to attend a repo auction and bid on the vehicle. By law, the creditor must notify the owner when such an auction will take place. If a vehicle is sold at auction, North Dakota law requires the title as well as a repossession affidavit.