The repossession. After that 21 days from the Fourth Schedule notice, the bank will have the right to repossess the car if any outstanding dues aren't paid. 3. Post-repossession notice. After repossessing your car, the bank will send you a notice to inform you that it has successfully repossessed the car. 3. Create a "security interest." A "security interest" is what creates the collateral for your loan, and what gives you the right to repossess the property. In this case, the collateral is the car itself. Part of your sale contract needs to include language that creates a. Here are a few ways you can mitigate this: 1. Speak to your credit provider. A proactive approach may be the best way to avoid repossession. Try to negotiate an alternative arrangement, such as selling your vehicle yourself or surrendering it. 2. Settle the outstanding amount. This is the ideal option.