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  Ohio, like most states, has adopted the Uniform Commercial Code to regulate secured transactions that occur in Ohio. Ohio law considers a transaction "secure" when a third-party creditor loans a consumer money to purchase an item. The transaction is "secure" because the item acts as collateral for the loan. The creditor has the right to repossess collateral if the consumer stops making payments on the loan, which is called "default." Usually, a creditor will resort to repossession after other collection efforts fail.
  
  

Perfection

• Under Ohio laws, a creditor can repossess collateral from a secured transaction if the creditor has a secured interest in the collateral. To satisfy Ohio laws, the creditor must "perfect" its interest in the item, and that requires two steps. The sales contract between the creditor and consumer must specifically state the creditor retains a security interest in the item. The creditor also must register its security interest (also called a "lien") with the county clerk to have its lien affixed to the certificate of title. The county clerk keeps a copy of the certificate of title with the lien affixed to it. This process is also called recording the lien.
  
  

Repossession

• As long as its security interest is perfected, a creditor can repossess an item, such as an automobile, in Ohio, without getting a court order. However, the creditor can only repossess through non-judicial means if repossession can be accomplished without breaching the peace. For example, if a car owner stops making payments on her automobile loan, a creditor can send a tow truck to repossess the vehicle, but only if the tow truck driver can do it without using force, the threat of force or violating Ohio laws for trespass.
  
  

Redemption

• After repossession, a consumer can get his item back if he can satisfy all outstanding obligations under the contract. For instance, the consumer must get his overdue payments up to date. In addition, the consumer must pay the creditor's expenses incurred in repossessing and storing the item. If the consumer can meet those requirements before the creditor resells the item or enters into a contract for the resale of the item, the consumer can get it back (or "redeem" the item).
  
  

Resale

• The creditor must resell the item if the consumer has paid at least 60 percent of the loan. In this situation, if the creditor fails to resell the item 90 days after repossessing it, the creditor may be liable to the consumer for damages. If the consumer has not paid at least 60 percent of the loan, the creditor can keep the item as satisfaction for the outstanding debt. However, the creditor must provide the consumer with written notice of its intention to keep the item. The consumer then has 21 days to object in writing and force the creditor to resell the item.