Car loans are contracts. Usually there is a provision within the loan agreement that states that if you are even one day late, the lender or servicer has the right to repossess the vehicle, often without notice. Late fees do not necessarily need to be added to exercise the right to repossess. Check your state's laws on repossession and notice requirements and then check your contract to a) see if the provision I mentioned is included therein and is clear and b) if it conforms to the state law you found. Basically, I don't believe you will prevail in the small claims matter but keep it in mind for any future motor vehicle purchases that depending on the lender or servicer, the possibility of repossession is actually quite real.