What Is Wrongful Repossession?

Wrongful repossession occurs when a lender or repossession company:

• Does not follow the law in repossessing your vehicle.
• Lacks the “present right to possession,” meaning they do not have the legal authority to repossess your vehicle at that time.
• Targets the wrong vehicle or individual due to an error.

Common Examples of Wrongful Repossession

Wrongful repossession happens when banks or their repo agents attempt to take your vehicle without having the legal right to do so at that moment, known as the “present right to possession.” This requirement is often violated in several ways:

• Repossessing your car even if you’re current on payments.
• Repossessing the wrong car altogether.
• Proceeding with repossession when the lender lacks a valid lien on your vehicle.
• Repossessing a car that is legally exempt, such as during bankruptcy proceedings.
• Breach of the Peace During Repossession

Examples of breach of the peace include:

• Ignoring your objections: In some states, simply saying, “You may not take my car,” is enough to halt the repossession.
• Using threats, harassment, or physical force.
• Involving law enforcement inappropriately.
• Entering onto secured private property, such as a locked garage or fenced yard.
• Repossessing an occupied vehicle.

Your Legal Protections

Both federal and state laws regulate repossession practices to protect consumers from unlawful conduct. Illegal repossession is secured under the FDCPA and other state-specific laws, like the Uniform Commercial Code.

A October 2024 report from the CFPB revealed widespread illegal practices in auto finance, including:

• Wrongful repossession of vehicles after borrowers made timely payments or received loan extensions.
• Misapplication of payments, leading to erroneous late fees.
• Failing to provide refunds for unused portions of add-on products after early loan termination.
• Providing misleading loan disclosures and placing inaccurate information on borrowers’ credit reports.

The FDCPA specifically protects consumers by:

• Applying to repossession agencies to ensure fair practices.
• Prohibiting harassment, misrepresentation, and other illegal actions.
• Allowing consumers to recover statutory damages, actual damages, and attorney’s fees when their rights are violated.

How We Can Help

Here at Lemberg Law, we have extensive experience in wrongful repossessions. Our lawyers:

• Analyze the details of your case to determine if your rights were, in fact violated.
• Seek statutory damages, emotional distress, and other financial losses due to the illegal repossession.
• Hold lenders and repossession companies accountable.

Take Action Today

If you believe you are a victim of wrongful or illegal repossession, do not wait to act. Contact Lemberg Law for a free consultation. We will review your case, explain your rights, and fight to ensure you receive the compensation and justice you deserve.