Forcible Seizure of Motor Vehicles Due To Default on Consumer Financing Payments

Abstract

Financing institutions focus on consumer financing, including motor vehicles, with fiduciary collateral. In practice, consumers who default on payments may be considered in breach of contract, leading to the execution of the fiduciary collateral. This study examines the procedure for repossessing a vehicle in cases of consumer default, legal protection for consumers against forced repossession, and the criminal liability of debt collectors. The research employs a normative juridical method with a descriptive-analytical approach and library research. The findings indicate that the execution of fiduciary collateral must involve the police, consumers' rights are protected by law, and debt collectors who unlawfully seize collateral can face criminal charges. Additionally, financing companies can be sued for unlawful acts and are required to provide compensation