Effective July 1, 2014, Oklahoma increased the dollar amount protection for its anti-deficiency statue to $4,900. If a creditor repossesses your car or other personal property in Oklahoma, the creditor is prohibited from collecting a deficiency from you if the amount you paid to purchase the property was $4,900 or less.
If your car or other secured personal property is repossessed, in most cases the creditor will sell the property. In many cases, the sale proceeds are not enough to cover the unpaid loan balance plus the costs of repo and sale. The difference between the two numbers is called the deficiency. The creditor can try to collect this amount from you. If you don’t pay, it can sue you.
Oklahoma places limits on a creditor’s right to collect a deficiency. If the purchase price for the car or other personal property that is the subject of the repossession was $4,900 or less, the creditor cannot go after you for a deficiency. (Learn more about Oklahoma’s law on deficiency after repossession.)
This dollar figure is updated every year based on changes to the consumer price index. The Oklahoma Department of Consumer Credit announces any changes on or before April 30 and the changes go into effect on July 1.