If there is a breach of the peace, you may be entitled to sue the repossession company for damages, for violating the fair debt collection laws and conversion (essentially, civil theft). This is true even if you were in default under your security agreement and the repossession order was proper.
Are repo companies responsible for damages?
When a car is repossessed by a lender, liability for the car and damages made to it transfers to the lender as well. So, if a repossession company damages the car in the course of repossessing it, then the company is legally responsible for the damages.
Can you sue repo man?
In the state of California, you can be in default if you are even one day late, which gives the right to lenders to repossess. Therefore, if your car is wrongfully repossessed, you have the right to sue the lender and the repo man.
Can a repo agent break into your garage?
That means it cannot use, or threaten to use, force or violence. It cannot break locks or destroy or damage property in attempting to reach the car. If the repo agent breaks into your garage to take the truck, that is breaching the peace. You can raise that as a defense if the creditor files a deficiency lawsuit against you.
What happens if I try to hide the car from the Repo Man?
However, if you keep the car locked in a garage or behind a chained gate, the creditor cannot repossess the car because it would be breaching the peace (damaging property). Again, whether you are allowed to do this depends on whether you trying to defraud the car loan lender.
When does a repo company have the right to take your car?
In some states, this law applies if your car is behind a locked fence or other type of locked barrier structure on your property. The repossession company hired by your creditor can send an individual out to repossess your car at any time of the day or night.
Can a car be damaged during a repossession?
However, during the course of repossession, the company should not have to damage the vehicle. Therefore, damage to the vehicle—unless partially caused by its owner—cannot be considered a cost of the repossession and cannot be passed on the vehicle’s original owner.
