I was late with one payment and the bank repossessed my car. Can it do this?

There are no banking laws or regulations that address when a national bank may repossess your vehicle. Technically, if your payment is one day late, you have defaulted on your loan.

Each bank may set its own policy on the conditions of default that will trigger repossession. (These conditions of default are included in the loan contract.) When you accepted the loan, you accepted these conditions. You should contact the bank if you have questions about the terms of your contract.