Car Repossession in Maryland: Two Key Statutes
The two Maryland car repossession statutes that most likely apply to a car purchased in this state are the Closed End Credit Grantor statute and Article 9 of Maryland’s Commercial Law Article. Both are designed to prevent fraud and collusion, unlawful junk fees, and other violations of your consumer rights.
The Closed End Credit Grantor Statute
This statute states that if its provisions are not followed, including the requirement of furnishing a notice following repossession, the credit grantor is not entitled to any deficiency judgment to which it would otherwise be entitled under the loan agreement.
Article 9 of Maryland’s Commercial Law Article
Article 9 also bars a deficiency judgment for violations of the statute. It goes further: If the creditor violates the repossession provisions of Article 9, it may owe you statutory damages equal to the entire finance charge plus 10% of the purchase price.
This is designed to ensure that when creditors don’t comply with the law, they are held responsible instead of you, the consumer.
The Holder Rule: Another Key Defense
The Federal Trade Commission Holder Rule protects consumers who were lied to or cheated by their car dealer. If the dealer misled you at the time of purchase, you can use that as a defense if the finance company sues you for a deficiency.
In our experience, many people stopped paying their car loan because the car itself was a lemon, or the dealer lied to them at the time of purchase. It’s in exactly these cases that the Holder Rule can help.
Other Wrongful Repossession Issues

Breach of the Peace
Repossession agents cannot use force, threats, violence, or intimidation. If an agent continued taking a vehicle after you objected, created a dangerous confrontation, damaged property, or disturbed your neighborhood, those actions may violate consumer protection laws and expose the repossession company to liability.

Repossession of the Wrong Vehicle or Improper Seizure
Lenders sometimes fail to properly credit payments, apply fees incorrectly, or repossess vehicles after disputes that should have been resolved first. Taking the wrong vehicle entirely is also more common than people realize.

Personal Property Left in the Vehicle
Repossession companies do not have the right to keep or dispose of personal belongings inside a repossessed vehicle. If you were denied access to your property, charged improper fees to recover it, or lost valuables after repossession, you may have additional claims.

Credit Reporting Damage
Wrongful repossessions frequently result in inaccurate credit reporting. Consumers may have claims under the Fair Credit Reporting Act when lenders report inaccurate information and fail to correct it after a dispute.
Our Process
Why Hire One of Our Attorneys?
Wrongful repossession cases involve Maryland repossession statutes, federal consumer protection laws, financing agreements, and deficiency lawsuit defense. Finance companies rely on complex documentation and aggressive collection strategies. Consumers benefit from attorneys who understand:
- Maryland repossession statutes
- Deficiency judgment defenses
- The FTC Holder Rule
- Federal consumer protection statutes
- Credit reporting disputes
- Litigation against lenders and finance companies
Our attorneys know these laws inside and out, backwards and forwards. You don’t have to deal with this alone. Let’s talk.








