Yes, if there is a security agreement providing that the vehicle was collateral for the loan and the loan was in default for non-payment or some other reason.
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Yes. If the car was put up as collateral to secure the loan, then the lender can repossess the car. Keep in mind, they are supposed to give you notice before they sell the car to let you know when/where it will be sold and what you can pay to redeem it. If they sell the car, they need to also give you an accounting.
If you get those letters, I would suggest you share them with a consumer rights attorney experienced with Auto Fraud matters.
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The right to repossess is granted by a security agreement (a note which provides property as collateral for the loan). If there is no security agreement, there is no right to repossess. The security agreement sets forth the events of default, at least one of which must occur before the right to repossess accrues.
The definitive answer to your question depends upon the agreement that you signed. However, even if the agreement provides a right of repossession, there remains the question of whether or not they have a security interest in your car. In Texas, a lien against an automobile can be perfected only by identifying the lien holder on the title.
In summary, I believe that the title loan company's position is weak from a legal standpoint. However, realize that the title loan company probably is not as familiar with the law as they think they are and, in many instances, they do not care what the law is. Legal or not, right or wrong, expect to have your car repossessed.
You should contact an attorney who is board certified in consumer law to fully determine your rights.
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