What does repossession mean?
Reposession is the recovery of property or equipment by a lender, owner, or other creditor when a borrower fails to meet the financial or legal terms of an agreement. It most often concerns financed vehicles, machinery, or business equipment, although the word can apply to any property subject to such an agreement. Repossession may begin with a demand or notice and, when necessary, proceed through repossession agents or legal enforcement. In general discussion, the word evokes the practical consequences of default: the creditor regains the asset while the borrower loses both the property and continued use of it. Its legal consequences are not identical everywhere, because the procedures and protections governing repossession vary by jurisdiction. The term should therefore be distinguished from foreclosure, which usually involves a lender taking a mortgaged property through a court process rather than directly reclaiming a specific asset.
nounThe act of taking back property or equipment from a borrower who has failed to make required payments or otherwise breached the terms of an agreement. It may also refer to the possession or control regained by a lender or owner.
- The act of recovering property or equipment from someone who has defaulted on an agreement or payment obligation.
- The condition of having such property taken back by its owner or lender.
"After months of missed payments, the bank began proceedings for the repossession of the car."
"The company sought the repossession of the leased equipment after the client entered bankruptcy."
"Higher interest rates and increased repossession activity placed additional pressure on the used-car market."
The plural is common in business and legal contexts for the number of assets reclaimed through repossession.
"Repossessions increased sharply as more borrowers struggled to meet their loan payments."
When a loan goes badly wrong, repossession turns the creditor's claim into physical possession.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does repossession come from?
Repossession was formed in the early 19th century from the prefix re-, meaning "again," and possession, with the sense of taking or recovering possession again. It ultimately draws on Latin repository, meaning "a place where something is stored," and related forms built from reponere, "to place again." Comparable Latin-derived words include repository and reposition.
Related word forms
How repossession is actually used
The term is most often used for cars, machinery, and other financed property. It can sound more technical than the plainer phrase "taking back" or "seizing" property, and legal requirements governing repossession vary by jurisdiction.
Easily confused with repossession
Repossession is the act of reclaiming property from a defaulting borrower, whereas a recession is a broad period of economic decline.
Repossession means regaining possession of property, while resurrection means bringing a person or thing back to life or restoring it to use.