What Happens When You Default on an RV Loan?

When you default on an RV loan, your lender will repossess the vehicle and your credit score may plummet after the repossession is reported to the credit bureaus. The lender will also likely file suit against you in civil court for defaulting on the loan.


The law allows the lender to take possession of the RV after you stop making payments. A tow truck driver trained in vehicle repossessions will be sent out to take away the vehicle.

Your Rights

The tow truck driver can take the RV without consulting with you, but cannot break into a locked garage or violate any other laws during the repossession.

Sale of the RV

The lender will attempt to sell the RV on the open market or at an auction. The lender will keep the cash from the proceeds, and you will still be responsible for any remaining loan balance, as well as additional fees related to the repossession.

Court Action

The lender will likely sue you in civil court for the remaining balance unless you are able to reach an agreement to settle the debt.

Judgments and Garnishments

The lender could win a judgment against you in court and attempt to garnish your wages or freeze your bank accounts until the delinquent debt is paid.


About the Author

Robert Lee has been an entrepreneur and writer with a background in starting small businesses since 1974. He has written for various websites and for several daily and community newspapers on a wide variety of topics, including business, the Internet economy and more. He studied English in college and earned a Bachelor of Arts in liberal arts from Governor's State University.