Losing your car to repossession is a stressful experience. If you’re facing this situation in New Jersey, you’re likely dealing with a lot of questions. One common concern is what happens to your license plates. When your vehicle is repossessed due to defaulting on a loan or lease agreement, understanding the process and your rights is crucial. This article, based on guidelines from the New Jersey Motor Vehicle Commission (NJ MVC), will clarify what typically happens to your license plates during a vehicle repossession in NJ and outline the repossession procedure itself.
License Plates and Vehicle Repossession: What Happens?
Generally, in New Jersey, and across most states, license plates are not considered part of the vehicle being repossessed. License plates are registered to you, the vehicle owner, not permanently attached to a specific car. Therefore, when your car is repossessed, you typically cannot keep your license plates on the vehicle.
The lienholder, such as the bank or leasing company, repossessing your car is primarily concerned with recovering the vehicle itself to recoup their financial losses. They are not entitled to your personal property, and in most jurisdictions, license plates are considered your personal property and linked to your registration.
What you should do with your license plates when your car is repossessed:
- Remove the plates: As soon as you are aware of the impending repossession or after the vehicle has been repossessed, you should remove the license plates from the car.
- Return or Transfer Plates: Contact the NJ MVC to understand their specific requirements. You may need to return the plates to the MVC, or you might be able to transfer them to another vehicle you own, depending on MVC regulations and your circumstances. It’s best to check the official NJ MVC website or contact them directly for the most accurate guidance on plate returns or transfers.
Instructions for Default of Security Agreement (Form OS/SS-99) is available online. If you choose to download the Instructions, be sure to also download the two required forms: Notice of Seizure of Motor Vehicle (OS/SS-55) and Application for Repossession Certificate of Ownership (OS/SS-57). All three of these documents are one page in length. If you need assistance, you may call the MVC’s Title Records Unit at 609-292-6500 ext. 5070; or submit an email to[email protected].
You may also call the MVC if you want a packet mailed to you. Although a packet may be requested and sent to you through the mail or by email, you must submit original paperwork and the required fees only through the mail.
New Jersey Vehicle Repossession Process: An Overview
While the focus is on license plates, understanding the broader repossession process in New Jersey is also helpful. According to New Jersey law (N.J.S.A. 39:10-15), repossessing a vehicle involves specific legal procedures that lienholders must follow. Here’s a simplified overview of seizing and selling a repossessed vehicle in NJ, based on information from the NJ MVC:
Seizing a Vehicle in New Jersey
When a lienholder repossesses a vehicle in NJ, they must take these steps:
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Complete a Notice of Seizure: The lienholder must fill out the Notice of Seizure of Motor Vehicle (OS/SS-55) form. This form officially documents the seizure of the vehicle.
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Mail the Notice of Seizure to NJ MVC: This completed form must be mailed to the New Jersey Motor Vehicle Commission at the following address:
New Jersey Motor Vehicle Commission
Special Title/Repossession Unit
225 E. State Street
PO Box 017
Trenton, NJ 08666-0017 -
Notify the Debtor: The lienholder is legally required to notify you, the vehicle owner/debtor, by mail about the intended sale of the repossessed vehicle. This “Notice of Sale” must provide you with a reasonable timeframe to redeem the vehicle by paying the outstanding debt and repossession costs.
Selling a Repossessed Vehicle in New Jersey
After a reasonable period following the Notice of Sale (typically around 10-14 days), if the vehicle is not redeemed, the lienholder can proceed with the sale. To legally sell the seized vehicle in New Jersey, the lienholder must submit the following to the NJ MVC:
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Original Vehicle Title: If the original title is lost, the lienholder needs to apply for a duplicate title.
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Application for Repossession Certificate of Ownership (OS/SS-57): This is a crucial form specifically for repossessed vehicles.
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Copy of Security Agreement/Lien Contract: Documentation proving the lienholder’s right to repossess.
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Copy of Notice of Sale: Proof that the vehicle owner was notified of the sale.
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Power of Attorney (POA): If someone is signing the application on behalf of a company, they need a POA.
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Required Fees: Payment of title fees. As of the last update to this information, the fee was $60 for a title and $85 for financed vehicles. An additional $60 duplicate fee is required if a duplicate title is needed.
This entire package should be mailed to the same NJ MVC address mentioned earlier for the Notice of Seizure.
Important Note for Courts: As of August 1, 2014, courts submitting a Writ of Execution using the Notice of Seizure form (OS/SS-55) are required to submit this form electronically to the MVC Title Record Unit at [email protected].
Key Takeaway: License Plates and Repossession
To reiterate, when your car is repossessed in New Jersey, you generally cannot keep your license plates on the vehicle. Make sure to remove them and contact the NJ MVC to understand the process for returning or transferring your plates. Understanding the repossession process itself can also help you navigate this challenging situation. If you have further questions about vehicle repossession in NJ, you can contact the MVC’s Title Records Unit directly at 609-292-6500 ext. 5070.
Related Links
Instructions for default of security agreement
Notice of seizure of motor vehicle
Application- title repossessed vehicle
