R
Legal
Repossession
The legal process by which a lender takes back an asset — usually a vehicle or property — that was used as security for a loan when the borrower fails to make payments. In South Africa, the NCA requires lenders to follow specific procedures and give written notice before repossessing goods.
Usage Examples
"After missing four car payments, he received a notice of repossession from the finance company."
"Under the NCA, a lender must send a Section 129 letter giving you 10 business days to catch up on payments before repossession can begin."
"Even after repossession, you may still owe the difference if the asset sells for less than your outstanding balance — this is called a shortfall."