Can a Car Repossession Be Stopped Once It Has Started?
Updated 11 June 2026 · FairClaim Guides
Some lenders and their agents tell borrowers that once a repossession has been "initiated," it cannot be stopped, retracted, or reversed. People are told this on the phone, on the very day their car is taken, at the exact moment they are offering to pay.
That statement does not reflect the law. The National Credit Code preserves your rights both before and after the moment of repossession.
Before the car is taken: your right to remedy the default
A credit provider must generally serve a default notice giving you at least 30 days to remedy the default before taking enforcement action. If you pay the arrears and any reasonable enforcement costs within the notice period, the default is remedied and the repossession must not proceed.
After the car is taken: your right to reinstate
Even after the vehicle has been repossessed, the National Credit Code generally preserves your right to have the contract reinstated — by paying the arrears and reasonable enforcement costs — up until the vehicle is sold.
In other words: a repossession is not final until the goods are sold. Anyone who tells you otherwise — including a representative of the lender — is misstating your legal position.
Why the "cannot be stopped" statement matters legally
A false statement about your legal rights, made by a financial services provider in the course of dealing with you, can amount to misleading or deceptive conduct under the Australian Consumer Law (s.18) and the ASIC Act (s.12BB equivalent provisions for financial services).
If you were told the repossession could not be stopped — and you can identify when and roughly what was said — record those details now. The lender’s own call recordings are required to exist, and you can request them under the Privacy Act 1988 (Cth). A misstatement like this is a serious matter in an AFCA complaint.
What to do if you were told this
- Write down what was said, when, and by whom — as precisely as you can, as soon as you can.
- Ask the lender in writing for the total amount required to reinstate the contract (arrears plus enforcement costs).
- Request copies of the call recordings under the Privacy Act — the lender has 30 days to respond.
- Lodge an AFCA complaint. Include the statement as a specific allegation of misleading conduct, alongside your reinstatement request.
Check your position with FairClaim
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Start your vehicle repossession complaintFrequently asked questions
Is it true that a repossession cannot be stopped once it has started?
No. Under the National Credit Code, paying the arrears and reasonable enforcement costs can stop a repossession before it happens, and the right to reinstate the contract generally survives until the repossessed vehicle is sold. The process is not final at the moment the car is taken.
What if the lender refuses to tell me how much I need to pay?
You are entitled to a statement of the amount owing. A refusal or extended delay in providing the reinstatement figure — especially where the repossession fee is fixed in the contract — obstructs your statutory rights and should be raised in an AFCA complaint.
Can I prove what a lender representative said to me on the phone?
Lenders record calls. You have the right under the Privacy Act 1988 (Cth) to request access to personal information they hold about you, including call recordings and case notes. Your own contemporaneous notes of the call also carry evidentiary weight.
Is a false statement about my rights actually unlawful?
Misleading or deceptive conduct in connection with financial services is prohibited under the ASIC Act and the Australian Consumer Law. A scripted statement that repossession "cannot be stopped" — when the law says it can — may be a serious compliance issue, particularly if it appears to be standard practice.
Related guides
This guide is legal information, not legal advice. It describes general rights under Australian consumer credit law and may not account for the specifics of your situation. For advice about your circumstances, contact a community legal centre, the National Debt Helpline (1800 007 007), or a qualified legal practitioner.