The two-thirds rule in British Columbia is a significant consumer protection enshrined within the province's Personal Property Security Act (PPSA). This rule specifically applies to "consumer goods," which prominently includes vehicles financed for personal, family, or household use. Essentially, if a debtor has paid at least two-thirds (2/3) of the original amount owing on their auto loan, the secured party (the lender) generally loses the right to repossess the vehicle without first obtaining a court order. This means the lender cannot proceed with an extrajudicial seizure, even in the event of default.

Why this matters profoundly to the consumer is that it provides a critical safeguard against immediate and involuntary repossession. It forces the auto lender to pursue a more formal, often lengthier, and more expensive legal process through the courts, rather than simply seizing the asset. This additional time and legal hurdle can be invaluable, offering the consumer an opportunity to rectify the default, negotiate a new payment arrangement, or even sell the vehicle themselves to mitigate financial losses. In the current Canadian market, where economic conditions can create financial strain, this BC-specific provision ensures that consumers who have made substantial payments on their vehicle are afforded a higher degree of protection and due process before their asset can be seized.