Whether the vehicle is mortgaged or not, during the repayment period, the vehicle belongs to the borrower's property, and the lending institution has no right to possess and dispose of the vehicle. If the borrower is unable to repay the loan, resulting in breach of contract, the lending institution must also auction the collateral through legal proceedings, and the proceeds will be used to repay the borrower's remaining debts. Therefore, if the loan company forcibly tows the borrower's vehicle without going through legal procedures, the borrower can call the police and demand to safeguard his legitimate rights and interests.
During the period of vehicle mortgage, the mortgaged vehicle is still in the possession of the borrower, and the lending institution has no right to possess or dispose of the vehicle. If the borrower fails to pay back the loan within the time limit, the lending institution may take legal proceedings and auction the mortgage car. Because the borrower fails to repay the loan within the time limit, the lending institution has the right to detain the trailer, but only if the court decides to transfer the vehicle disposal right to the lending institution. If you want to recover the vehicle, you need to repay the loan, otherwise you can't recover the vehicle. If the lending institution trailers privately, it can call the police. Some loan companies will make it clear in the contract that if the repayment is overdue, the company can tow the car. If there is such a provision in the contract, it means that those who do not meet the legal requirements will not be protected by law. In order to avoid this phenomenon, it is recommended to repay in time.
legal ground
People's Republic of China (PRC) Civil Code
Article 394 Where the debtor or a third party mortgages the property to the creditor to guarantee the performance of the debt without transferring the property, and the debtor fails to perform the due debt or realize the mortgage right according to the agreement of the parties, the creditor has the right to be paid in priority for the property. The debtor or the third party specified in the preceding paragraph is the mortgagor, the creditor is the mortgagee, and the property that provides guarantee is the mortgaged property.
People's Republic of China (PRC) Civil Procedure Law
Article 120 Compulsory measures against acts that obstruct civil proceedings must be decided by the people's court. Any unit or individual who illegally detains others or illegally detains others' property to recover debts shall be investigated for criminal responsibility according to law, or be detained or fined.