What are my rights if a lender tries to repossess my car in BC?

In British Columbia, your rights regarding vehicle repossession are primarily governed by the Personal Property Security Act (PPSA). A key protection is the "two-thirds rule": if you have paid at least two-thirds of the total amount financed for your vehicle, the lender generally cannot repossess it without first obtaining a court order. This significantly limits a lender's ability to seize your car unilaterally, requiring them to pursue a judicial process and prove their case before a judge.

This rule is crucial because it provides a substantial barrier against arbitrary repossession once you've made significant equity contributions. Even if the two-thirds rule doesn't apply, lenders must typically provide you with proper notice of their intent to repossess, giving you an opportunity to remedy the default. Furthermore, after a lawful repossession, you often retain the right to reinstate the contract by paying arrears and associated costs, or to redeem the vehicle by paying the full outstanding balance, within a specified timeframe before it's sold.

Understanding these protections is vital, especially given potential economic pressures and fluctuating financial landscapes anticipated into 2025, which might strain household budgets. Knowing your rights empowers you to challenge unlawful repossession attempts, negotiate effectively with your lender, and potentially retain your vehicle. Always review your specific finance agreement and seek immediate legal advice or credit counselling if you are facing repossession or struggling with payments.