In British Columbia, the 'two-thirds rule' is a crucial consumer protection enshrined within the Personal Property Security Act (PPSA). Specifically, if a consumer has paid at least two-thirds (2/3) of the original amount owing on consumer goods, which prominently includes vehicles financed primarily for personal, family, or household use, the secured party (typically the lender or finance company) is generally prohibited from repossessing those goods without first obtaining a court order. This provision significantly elevates the bar for lenders, preventing them from exercising their usual self-help remedy of seizure once a substantial portion of the debt has been repaid.

This rule matters immensely to the consumer because it safeguards their significant equity in the vehicle. In a dynamic market like 2025, where economic conditions can shift and financial pressures may arise, this protection ensures that a consumer who has diligently paid down their auto loan is not subject to arbitrary or immediate repossession. Instead, it compels the lender to demonstrate cause and follow a judicial process, which can be more costly and time-consuming for them, often creating an opportunity for the consumer to negotiate a resolution, such as a payment plan, or to sell the vehicle themselves to cover the outstanding balance. It's a distinct provincial safeguard that provides BC residents with enhanced security against the loss of their primary transportation asset.