Having your vehicle repossessed is stressful enough without a repo agent making the situation worse. While Maryland law allows a lender or its repossession company to take a vehicle after a default in certain circumstances, there are limits on how that repossession can happen.
If a repo company uses force, threats, intimidation, or otherwise breaches the peace while taking your vehicle, you may have legal options.
What Is a Breach of Peace?
Maryland law allows a secured party to take possession of collateral after a default without going to court, but only if the repossession happens without a breach of the peace.
Maryland’s laws do not provide one simple definition of every situation that constitutes a breach of peace. However, conduct such as using or threatening physical force can cross the line. The Consumer Financial Protection Bureau also identifies physical force or threats, removing a vehicle from a closed garage without permission, and continuing a repossession after the consumer resists or refuses as examples of conduct that may constitute a breach of the peace.
For example, a repo agent generally cannot turn a repossession into a physical confrontation simply because you object to losing your vehicle. If a disagreement develops, the agent may need to stop the self-help repossession rather than escalate the situation.
Can a Repo Company Take Your Car Without Going to Court?
Yes. In many circumstances, Maryland law permits repossession without judicial process. Maryland’s Commercial Law Article provides that a secured party may take possession after default without going to court as long as it does so without breaching the peace.
Maryland law also contains specific provisions governing repossession of certain consumer property. For example, a credit grantor may repossess tangible personal property securing a loan through legal process or through self-help without using force.
This does not give a repo company unlimited authority. Self-help repossession is subject to legal restrictions, and the company cannot simply use force or threats to get around those restrictions.
Can You Sue a Repo Company for an Unlawful Repossession?
Potentially, yes. The specific legal claims and remedies available will depend on what happened during the repossession and the circumstances of your case.
An unlawful repossession may potentially support claims against the repossession company and, depending on the circumstances, the lender or finance company that hired it. A federal Maryland court has recognized that a debtor alleging a breach of the peace under Maryland’s repossession law may assert claims arising from the repossession, although whether a particular claim succeeds depends on the facts and applicable law.
The consequences can extend beyond the repossession itself. Maryland law also places requirements on certain repossessions, including rules concerning notices, redemption rights, and the handling or sale of the vehicle. Violations of those requirements may affect the lender’s ability to pursue a deficiency balance after the vehicle is sold.
What Should You Do After a Problematic Repossession?
If you believe a repo company crossed the line, document what happened as soon as possible. Write down the date and time of the repossession, what the agent said or did, whether anyone witnessed the incident, and whether there was any physical contact, threat, or property damage.
Keep any photographs, videos, text messages, emails, letters, or other records relating to the repossession. If law enforcement was involved, keep copies of any reports or incident numbers.
You should also avoid putting yourself in danger. If a repossession agent becomes threatening or violent, prioritize your safety and contact law enforcement when appropriate.
Talk to a Maryland Repossession Lawyer
A repossession does not mean you have given up all of your legal rights. If a repo company used force, threats, intimidation, or other improper conduct while taking your vehicle, you may have grounds to challenge the repossession or pursue other legal remedies.
At Holland Law Firm, we help Maryland consumers understand their rights when lenders and repossession companies fail to follow the law. If you believe your vehicle was wrongfully repossessed, contact us to discuss your situation and learn about your legal options.